Jim,
I was once of the opinion like you that all of PRST's future was already priced into the stock. However, as I did more research and saw the furthur positive developments in the company, I became a bull. You are too married to things like market cap. As far as I can tell, PRST isn't trading higher than 35x 1998 earnings, which is expensive, but not rediculous.
With regard to the plate sales, all everyone really knows is that PRST is, by the end of the year, have shipped over 1000 Quickie kits. I'm of the belief that they will be producting at least 80/month for the forseeable future into 1998. Now, I don't know and won't claim to know how many Quickie's are installed and how many other machines using PRST plates are installed; but they will be!! Maybe there's a 2 month delay, maybe a 4 month delay, whatever. THE MAIN POINT IS THAT EVERYDAY 3 (SOON TO BE 4) QUICKMASTER KITS ARE SHIPPED, MEANING THAT 3 (OR 4) MORE MACHINES USING PRESSTEK PLATES WILL BE INSTALLED IN THE FUTURE.
I'm not so sure why you don't just sit down and do some simple math and see that revenues are going to be rising dramatically in the next few quarters? It's really hard to dispute! You're mkt. cap arguments are really useless here....PRST is already to slowly grow its way into its multiple.
As for the Snapple argument, that one is on Richard-Zeng-level as worst comparisons I've heard :)
acey |
