Hi Jack and All...
Whew...Took almost an hour to catch up on the past weeks postings. I have been in Chicago on business and have been out of touch! How nice to be missed! Interesting, NASDAQ down nearly 10% in a week and PRST still hanging in there...
There have been some excellent posts and great research both ways on this stock. Tom has provided an excellent site to compile information on this stock. Many of you have been there. If not, do yourself a favor and see what many of us have found...This company has a real possibility of rebounding in a dramatic fashion over time. digitalmall.net
Have returned the calls to me in answer to my research regarding Class Actions today...Can't seem to find anyone in securities law that believes there is any merit or actual public wrongdoing by PRST or Cabot for that matter, that would warrant a favorable judgement for any of the plaintiffs in the 4 filings. Am waiting for still more information as to whether these cases are contingent or at a shared plaintiff cost and will post when it arrives. Also would seem prudent that PRST would carry some form of insurance to cover any costs associated with defense etc., if any of the cases are premitted to go forward, which is very doubtful. Seems the general feeling is the cases will be thrown out after discovery.
The answer to your question regarding Cabot and May sales of PRST stock had been answered by Jason's Mother. I never asked the direct number of shares as it really didn't make any differance after learning the current holdings. The Cabot money management firm (seperate from the Market Letter) sent letters to some individuals holding a large position in PRST stock due to the huge increase in value at that time. The letter reminded the investors of the advantages of diversification. A few accounts sheared off a small part of their position which were sold by the management firm at the direction of the few individual shareholders that decided to take a profit at that time: The term referred to by the management on the number of shares was "miniscule" and was covered in detail in post #751 by Jason's Mother. I have confirmed the following....The management firm owns more PRST and had purchased many more shares than they had sold. As was stated prior, the NET amount of shares under management in the investment company has grown considerably.
I can find no one that can confirm that any of the Lutts family or any of the direct employees of either the Cabot Management Company or the Cabot Market Letter have sold any PRST shares owned personally during the prior rise of the stock or during the fall. In fact, I was told by Lutts that no family member or employee has profited personally by selling even one direct share. He has also stated this publicly.
My use of the 225 estimate of presses using PRST plates was NOT indicating all Heidelburg Quickmaster DI's. This is the estimated number of total presses now using the technology and providing income to PRST from repeated plate usage.
Back to the stock, I was surprised that PRST again tested the support at the low 50s Tuesday. Didn't stay there long though. A lot of buying (covering?) from about 1:30pm, all the way to the close. PRST rose steady to a high of 64.5 at around 3:40pm before closing at 62.75 +3 7/8.
Expect today the stock will continue higher, opening above the Tues. close. Disagree with your thoughts of again hitting the low 50s. Dow was down 150 pts. plus when PRST was at 52 today. I don't think we will see the same action as was shown in the market today. Much to positive market reaction at the end of the day. My guess is a 69 close.
Have it on good information that many investors that were well diversified were forced to sell out Tuesday, no matter what stock they owned. Many investors faced fed calls on many margins this afternoon. Many lost fortunes Tuesday. Other long holders that had watched todays drop, reached the ultimate in stress tolerance, as the PRST went with the market early, diving to 52. Some were finally shaken out, after hanging on for all this time. I have sold other stock to stay with PRST and still do hold all my shares.
Still believe in this companies potential and that they will recover nicely over the next few quarters. I am hoping for .13 this quarter, which would be very favorable news next week. An increase of 1300% over prior year. Tom's estimate of .12 is still a huge increase. Friday will also be a day of anticipation for many of us.
There ARE some IFS short term....
With favorable earnings, will the market perception be that PRST has the ability to return to the 200 day average near 90?
If the SEC releases information that points the finger in a direction other than the presently believed investigation target of the Market Makers, could it cause another sell off and an increase in the short position? I myself don't believe that insiders manipulated the stock for any personal gain.
It is also quite possible that the SEC will find nothing and never release any information one way or another. This is not uncommon in other SEC investigations. This one has gone on for 2 years with no charges.
Don't think that it is not probable that the short position that was losing billions, did not influance this stock movement and also may be involved in the class action charges. There has been an unequaled effort recently to discredit this company without any basis of truth or fact using massive misinformation in the media, which was picked up in the class action charges and has been completely denied by the company, as having any merit and fact. Wonder how many involved as plaintiffs are now or were short early in this stock and were squeezed out? Has anyone been able to speak with the parties involved in bringing the charges? If so, please post your reactions and their claims. I contacted the first and second firms that are bringing the class action claims and have still not received one call back from either. Have a ton of questions for them.
Many have forgotton that this stock rose partially based on the perception of ever increasing revenues and earnings. There has been nothing to indicate that revenue will not continue to occur as it has in the other previous quarters. With so much public attention to this stock now, favorable numbers short term, could again draw attention to the original story here and again start the momentum of the stock on a postive direction. Just as the stock experianced this correction, things have a way of turning around. Remember PRST is a company with a recognized revolutionary product that is selling this product in ever increasing numbers. PRST has increased the number of employees by 35%, They are working Saturdays and their parking lot is full. The buyers will react to good news...count on it. They will return only if PRST is indeed what Cabot has written about it. Future earnings will be the key here. What profit the short position players are realizing now, can easily disappear quickly if market perception again turns postive. We all remember what happened to the short position on the flip side. PRST deserves some respect here and only the perception of ever increasing earnings actually becoming reality will provide it in the near future to the street and to the media.
Not a question of whose right or wrong....None of us really know yet do we?
Good Luck,
Neil Mack |
