JAX B DAWG's new post
The following is a post written by JAX B DAWG, a short of PRST board of Motley Fool at AOL. The reposting is permitted in advance by the poster.
Subj: Re:The Scoop
Date: 96-07-24 17:15:24 EDT
From: JAX B DAWG
After a wonderful vacation in the Rockies (Mtn Biking, Rafting, Golfing,
etc..) I am happy to return to the MF board and help ask a few interesting
questions. As most all of you know, I often am positioned extensively in
this stock and make no bones about it.
Having read the Cabot Money Management's 13F filing, I wonder how anyone in
their right mind can ever concede any credibility to his organization. He has
sold over 25% of his cumulative PRST position and reported to his subscribers
that he has only sold 2.5% (not a real typo....as the Cabot Market Letter is
proofread 3x by others). This was done during a period that Lutts has used
"special hotline reports" to tout and wax bullish on PRST......a "real"
ethical action. He goes on to say in the most recent letter that the SEC "is
not investigating Cabot.....they are simply one small part of a private SEC
investigation into the trading of PRST securities." This is a blatant
untruth, as the SEC never reveals who the target of their investigations are
until those parties are asked to submit a "Wells Letter" in response to
upcoming charges. Lutts will obviously go to great lengths to attempt to
mislead his subscribers as to the SEC's investigation status and their
obvious focus on certain of his activities. I remain firmly convinced that
someday in the future, Carlton Lutts and other members of his family will
most definitely be charged with extensive violations of Federal Securities
Law..........this will also extend to the Howards, Don Chapman, and others.
Don't forget that the SEC does not make half-cases....they will gather all
the info they desire first, and that is what they are doing right now.
I am also aware that the class-action suits recently filed against PRST,
its officials, and others will soon be broadened to include Jon Oxley, Don
Chapman, Mort Spitz, Everen Securities (Mac Walker and Joe Graves). What does
this mean? It will have an instant chilling effect on these characters by
immediately placing all their trading records and phone records subject to
legal discovery scrutiny and will place them in the spotlight of bright
sunshine for all their future activities in this name. Additionally, the SEC
and local securities regulators will be forced to closely examine all of
their roles in various short-squeezes, private placements, and news
dissemenations. All of this should have the net effect of keeping them from
organizing any future or lengthy squeezes, and adding considerable pressure
to the stock's price.
Another important question must be asked about the about the recent earnings
report? What was Catalina's contribution to the bottom line? Why doesn't
PRST management break any of that out for us? Would PRST earnings be
considerable without Catalina? If not, then has PRST painted too rosy a
picture? The bottom line is that sequential growth is slowing down here and
the hype is no longer sufficient to inflate this ridiculous stock price.
Printers are not settling on PRST as the "major" future of the printing
business and the sizable capital committments are waiting for other products
to come to market or are not signing onto the PRST parade as the hypster's
have promised. I know for a fact that CREO will be showing a technologically
superior product (and less expensive) by the end of 1996 and anticipates a
serious maketing push for 1997 and possibly a IPO thru GOLDMAN SACHS....(.a
very legitimate street name) . This would represent a very serious competitor
for PRST in the near term and would absolutely have a chilling effect on
"real and hard" sales of Q-Di machines. Also, do not forget that Heidelberg
has not lengthened or renewed the three-year partnership agreement with PRST
just yet.....they are watching as well.
Too many ifs, too many potential potholes to stumble in, and too little
"hard" #'s to support the hype. If any of you want to bet this way.........go
to Vegas.....they'll probably give you better odds the "hard" way.
A RELAXED DAWG.
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