Some of longs in this thread seem to have difficulties dealing with realities. James, if you don't know much about the earning estimate of PRST, you at least should know what PRST has said. In its June 21 new release, the company states: "Furthermore, an estimate recently published by the Cabot Market letter of Presstk's earnings for its second quarter ending June 30, 1996, was developed by Cabot without contacting Presstk and would appear not to have taken into consideration, among other things, Presstek's recent announcement regarding its accounting for income taxes with respect to income tax benefits arising from the exercise of certain stock options." It says, if translated into plain English, Cabot's estimate is too high. Obviously, Presstek is distancing itself from Cabot and $.17 should be considered as the upper limit. Please note the reasons for this downplay: 1.The recent announcement regarding its accounting change about income tax credit. Does it mean that the second quarter performance is, contrary to what many posters here asserted, affected by this change? 2. AMONG OTHER THINGS. Please pay attention to this phrasing. I have no ideas of what they are, since they are obviously not including the legal fees associated with two cases filed a week later. Anyway, "$1 per share in earnings!" is only fantasy.
Neil, I am surprised to see that you are doing guesswork on First Call. You don't have access to this easy-to-get information? The first call estimate of the second quarter earnings is $0.17 (by one broker). I don't know its timeliness and accuracy. I read Zacks company report, where the estimate is $.10. This is "supposedly" given by an analyst named Mr. Patterson. I have reason to suppose it, since he said he is the only analyst covering PRST. By the way, he is not an analyst "unfriendly" to PRST. On the contrary, he is said to be one of promoters of this stock. BTW, there is a ranking by only one regional brokerage firm: strong sell.
In addition, the term "news" used in my last post is defined very loosely. I will provide more "bad" news (including reports) later.
Regards,
Guodi Sun |
