Presstek -- Stock of the Decade?? Message Board

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Technology Stocks : Presstek -- Stock of the Decade??

PRST 0.0001000

0.0%

Nov 14 9:30 AM EST

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To: Thomas J Engelsma who wrote (2862)	5/19/1997 2:44:00 PM
From: Richard Zeng	of 11098

Tom, You are indeed the experienced one in the bulls, and you do know the challenge facing PRST. The most daunting issue for PRST is organizational growth. If they mismanage or do not have enough experience, we can see they will tumble for one or two years before they get back on track. Short term sales/earnings growth is not important to the basis of PRST establishing itself. Regarding Acey's cashflow argument, it seems absurd. I am surprised to see that Acey as a technician working in one of the electrical and computer engineering lab will be so confident about her ability to understand accounting rules. Frankly, I never took an accounting class. Since my wife is a CPA and she educated me a little. I happen to read a few classic accounting books. Whenever those so-called experts on Wall Street touting a specific stock, they usually suggest investors to ignore sales number, ignore earning number. Even though the P/E is extremely high for that particular stock, they said it is worth buying because of the cashflow. Acey probably learned it from them, not from the accounting classes. She still have not anwser my question as to what is the reasonable multiple of price-to-cashflow for PRST. I can not find the anwser in either "Intellegent Investor" or "Security Analysis" written by Ben Graham. We will see PRST at $35 in 1997. Time will tell who is right. Richard

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