To All...I was just sent this E-mail with a request that I post it. I assure you, the Author owns many tens of thousands of Presstek shares, is not connected to the company in any way and has asked to remain anonymous. He provided me means to confirm his identity prior to my posting. After confirming, I'm certainly listening.
September 8, 1997
Neil Mack, please post on the Presstek board.
"To Short Traders of Presstek Co. Stock."
When I was a youngster, my Father, a wise and gentle man, told me a story. It concerned a farmer who came to town, visited the zoo and found himself before the Giraffe enclosure. There he stood for thirty minutes, staring at the beast. He then turned and in a voice loud enough for all to hear, stated "there ain't no such animal".
So it is with Presstek. The interested observers have studied the firm and its technology and products and have declared in a firm voice, "there ain't no such animal".
Perhaps there is an agenda here that lurks behind the honest effort of the wise men who claim they are only serving the best interests of investors by making us all aware of a corporation with nefarious executives, outdated products and worthless technology.
To assure us of their decent intentions, they have put forward their own and others money to sell the Companys' shares short. One would think it a paragon of altruism.
Yet, I have considered some other facts. It is a fast growing company, (doubling year to year) with virtually no debt. An American firm that will make more than a passing contribution to our balance of trade and technological cachet.
I have known Robert Howard for some years before Presstek was born. I, a careful critic, found him to be a man of decency and ability, concerned with the condition of less fortunates and always willing to contemplate both sides of any issue.
There is some speculation among people I have been in touch with that there may be a body of people, short the shares of Presstek, knowing that the owners of the stock are not interested in cashing shares for short term profits and will consequently not sell their large holdings. As is always the case, they encourage and manipulate others to sell shares short while at the same time, they themselves then purchase to cover their own positions.
Some in the investment community now foresee the mother of all short squeezes in it's final stages of crystallization. With the huge short position, there could again be ten or fifteen dollar days in the rush to cover. At the time the ancient wisdom will be brought forward: "it wasn't smart to short at $35, but at $75 you will be able to own a jet, a high powered cabin cruiser of some equally expensive and ostentatious adult toy. "The quite and orderly investors may be counted upon to declare "we told you so, "being only humans."
What could lie ahead for this Presstek Co.? A N.Y.S.E. listing, other major alliances with visible prestigious companies, both here in the US and with foreign firms? A "knock your socks off" merger or accusation? I honestly don't know, but I for one believe the possibilities here are legion. And what about the application of Presstek technology in the non printing world?
I have also heard that this company may challenge the public statements of some of it's most aggressive detractors. Again, the words of the French philosopher will surface - "This animal is a dangerous beast - it defends itself when attacked".
With good wishes to you, I remain,
Your Friend,
Codger |
