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Technology Stocks : Presstek -- Stock of the Decade??
PRST 0.00010000.0%Sep 29 10:16 AM EST

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To: Thomas J Engelsma who wrote (1291)9/7/1996 12:17:00 PM
From: James C. Shircliff   of 11098
 
Manufacturing and distributing is exactly what PRST will be doing.
I agree. And, there will be other mfgr and distributors of plates for CTP presses. And, you know what kind of multiple Manufacturers and distributors get? Sometimes, all the way up to the mid-teens! Now just insert your estimate for 1997 into the equation, multiply that by 12x to 18x, discount it for the extra risks (if you are aware of any), and you have a reasonable price target.
Another matter: put yourself in Heidelberg's place. Do you want only one supplier of terribly expensive plates for your QMDI? Or would you intentionally stretch out production until you knew there would be more than one reliable and reputable supplier of the plates at a reasonable cost?
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