Hi Roy,
Have not had to much time to post..My business has been getting slammed with work and I have had to stay busy trying to catch up!
PRST stock is starting to settle into a narrow trading range at low volume as compared to what we have experianced the last few weeks. It has been great this past week not having to spend so much time pulling my hair out, searching for a fundamental cause or factual basis for the prior rapid fire, negative press articles.
Amazing, since July 1, when PRST's news release responded to the "bogas charges" of the 2 shareholder suites, there has been no negative news. We have gone 5 days without another salvo! Still alot of short interest and "puts" out there, although there was alot of covering over the past few weeks.
The stock is reacting very favorably this week. Although down just a point since last Friday, (Close of 64.5 on 6-28 to 63 7/16 on 7-5) the important element here was the increase in the daily low price of the daily trading range and the decreasing spread between the daily high and low Friday - only 3 1/4 points on 178,000 shares. Friday, the stock opened at 64.5, down 3.5 from Thursday's close on no news, other than the overall hit that the market took at the open. It did recover to 66 at mid day, before closing down. Continuing light volume produced largest trades of 1@5000, 4@4000 and a few 2,000 trades. their were 352 transactions in the stock Friday, with the average trade 506 shares.
Still would like to see the coming week continue with low volume and the same pattern. Fundamentally this stock needs a rest with no more negative news. (Depends on the short position.)
PRST could close above 70 by next Friday as anticipation on earnings before release early next week is announced. PRST discounts the .17 Cabot projection. First Call I believe posted .15 2Q. The lowest I have heard is .12. I am guessing between .13 - .15. Even .12 could easily propel the stock up on this kind of positive news. As Jason's Mother, Tom, and others have so plainly stated, the real news here is that sales and gross earnings continue to increase at the fantastic high percentage growth, reported in prior quarters. This could have a real effect in the immediate share price, proving to many prior believers, now on the sidelines, that the potential long term growth of this stock is still in place. I can find no reason to expect that the reported growth will not continue now and in the future and have recently added again to my PRST position in anticipation.
There are many that post here that believe the stock is to high priced at this time....It is important that anyone purchasing the stock now carefully read those posts. They are right!!! Based on the numbers today, the stock is just as overvalued now as it was when it was at 200....based on todays numbers. However, I do not expect to see PRST trade again in the 40s or 50s. Much support out there at 62 and again at 59. PRST is being bought and held today, based on the future value of the stock. Some don't see this growth happening and claim the competition will sqelch it. I choose to believe differently. Just check out the past recent stock history after previous quarterly earnings were posted.
I own this stock for the FACT that PRST is contiuing to place their plate technology on not just Heidelburg Presses, but many other competitors presses that are being converted to alow the PEARL plate technology. I have spoken to printers using the plates and have researched the reports of printers that own Heidelburg DI's who see the industry direction having to move with them. I have spoken to Heidelburg directly at the center 20 miles from me. From just this location, they start installing the first of over 20 ordered Quickmaster DI's, with expected delivery and installation of the first orders late this summer or early fall. They ALL will be using PRST plates. FYI, There are 11 centers across the US. The Detroit Heildelburg Center only handles 4 smaller size states. What do you think is happening at the other 10 centers.
While ordering some printing for my business Thursday with a small shop in Monroe, MI, (Lamour Printing) I bought up PRST and asked the owner if he was aware of the company....You should have seen his reaction. It was if I was a long lost friend. This guy, (John Lamour) stopped his work, and gave me a tour of his shop, introducing me to each of his 5 employees, showing off his old Heidelburg presses to me and the way he must make plates by hand. He does NOT own a Quickmaster. Says he is just to small, and could not afford the cost of a Quickmaster press although he has inquired with Heildelburg. Said his business would potentially compound many times if he could afford one. Says HE STILL OWNS A BUNCH OF PRST STOCK as well as each of his employees owning shares. He believes totally in this NEW technology and TOLD ME that the Direct to Plate direction is where the printers are headed. He has never heard of Cabot or Lutts and bought the stock based on the input of the other many printers he knows and in speaking with his broker and the Heidelburg technicians that come to his shop. He and the employees are excited about the expected revenue from the PRST plate production. Says he did sell some of the stock at his brokers advice at 145 and again at 89 to take some profit and is looking to buy back in now. Must have asked me 10 times if I felt that the price could go lower so he could get even more shares.
Needless to say, It was a pleasant drive all the way back to my office.
All for now,
Neil |
