As there is to be no changes in Heath's management and staff, and the actual running of the companies activities (by the prior owner) continues as it was, it seems to me Heath has made a solid investment by obtaining nearly 95,000 shares for his company.
With the long-standing working relationship and from prior agreements between Presstek and Heath, all involved are very familiar with the others potental ability to grow each other.
Heath is well respected and has been around for 20 years. They are very much in tune with the graphic arts industry, the direction the industry is moving and the needs and wants of their individual clients. Obviously, it seems Presstek technology is seen to be a desired item by Heaths clients.
Certainly Heath has been positioned to be in the know regarding Presstek's current and planned offerings. It seems they are most comfortable turning the reins over to Presstek for shares of stock.....Of course, Heath could NOT possibly know more about the future direction of the stock than the "informed" bears, that have 5 million plus shares short on Presstek's stock.....could they?
The bears are scratching their heads, wondering why on earth Heath would not demand cash rather than accept stock only worth "$5.00 a share" in the bears opinion. In fact their only response is "Did Presstek guarantee the share price?" Would it not make sense that Heath has a pretty good idea this stock is severely undervalued and a true winning investment for them? Every dollar of increase to the Presstek share price will increase Heath's holdings by $95,000......I would say Heath has a true vested interest in promoting Presstek and helping them design truly marvelous new presses and technology for the
markets they represent.
I wonder if Presstek was obliged to provide Heath with their current "internal estimates" of earnings and future stock value? Why should they not know, they are now part of the Presstek company. Even the bears commenting on this thread state "$2.4 million is not much to pay for a company that has been around for 20 years." If the belief is that this stock is soon to reach much higher levels, Heath could be placing the true valuation of their sale from the stock, more so than cash. Seems Presstek received a great bargain, obtaining the company and for that matter, so did Heath! When this stock reaches 50, they have doubled their money! At 100 this tiny $2.4 million "sale" is worth $9.6 million.
I would say the business minds from Heath believed they could make a much stronger investment by accepting Presstek stock, rather than cash, knowing their contributions to Presstek would in fact increase their own worth, as they contribute to Presstek's continuing growth!
I recall reading an article that connected Heath's licensing agreement and use of a Heath patent, with Presstek and the Scitex/KBA 74 Karat press. A possibility that could have something to do with this purchase. When I relocate the article, I will post it. I wonder if the acquisition of Heath and any of their patents Tom posted are connected in anyway to the future developments with FUJI?
Neil |
