From Dow Jones News Service: Presstek Up Again On Stock Split, Investor Tour
By Laura Johannes
NEW YORK (Dow Jones)--Shares of Presstek Inc. (PRST) continued to rise Monday after news of a 2-for-1 stock split, a flurry of positive press releases and an investor tour of the company's new manufacturing facility.
Spooked by the rising stock price, some short sellers scrambled to cover their positions - driving the price still higher.
The stock of the printing technology firm rose 6 3/4, or 8%, to close at 91 1/4 on Monday, giving it a market capitalization of $1.5 billion. Nasdaq volume was heavy at 733,400, compared with average daily volume of 143,500.
Presstek, Hudson, N.H., is a developer of technology that facilitates printing without use of messy photo-development chemicals. Its stock - which hit a high of 200 on May 21, 1996 - has long been the bane of short sellers. Skeptics argue that the company's digital-imaging technology will fall prey to stiff competition once it is established in the market, but many bulls have held steadfastly onto their shares.
On Friday, the day of its annual meeting, Presstek shares rose 11 to close at 84 1/2. News of the upcoming stock split fueled buying because of a perception that the stock will become more accessible to small investors, said analyst Eric Peterson of Pennsylvania Merchant Group Ltd.
After the annual meeting on Friday, investors toured the company's new manufacturing space and were shown machines that will eventually make its printing plates, freeing it from the need to subcontract those services, Peterson said.
"These guys are getting ready for big-time production," said Peterson, who attended the meeting and the tour.
Among the press releases issued over the past week was an announcement that the company will show a new printing plate technology called "PEARLgold" at a large trade fair in Dusseldorf, Germany, starting Wednesday. The company press release describes the plate as a "major advancement in digital plate technology" but gives scant details on its projected market or pricing structure. Officials at Presstek couldn't be reached for comment.
The Securities and Exchange Commission is conducting an investigation into trading of Presstek shares and statements made by company officials about the company. Presstek had net income of 18 cents a share in the first quarter, up from 8 cents a share the year earlier. revenue was $20 million, up from $11 million.
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Is this the same Laura Johannes that last year, in my opinion, proceeded to butcher Presstek with rumors and false information that was fed to her by the short position? The hatchet job she did to the Lutts family and the Cabot Market Letter was just short of criminal in my opinion.
Be interesting to see if it appears in the WSJ. The absence of any news of Presstek in the WSJ after an 11 point rise Friday was quite startling. Note how Laura left out any mention of the Alcoa deal, the primary fuel for this stock surge.
Furthermore, I believe that IF the SEC had cause or reason to find wrongdoing by anyone from the company, including officers and directors of Presstek, they would have long ago acted. I have always maintained that it is actually the short position that has manipulated this stock in the past and should be the focus of the current SEC investigation. If there are those on this thread that don't believe the media is influanced and can't be fed false information, then look whose naive.
Neil |
