I am new to this and I don't own any RSYS, thankfully.
I have held presstek and have watched it take a tremendous
dive last spring due to the same sort of thing, however, it
looks as though the RSYS scenario will ultimately be more severe.
I sympathize with RSYS holders who are taking a beating.
This is more of a manufacturing-intensive company than PRST and, therefore, the cost of inventory is a greater share of the cost of sales, leading to a greater potential for disaster.
One has to ask why management is in trouble over inventory. By that, I mean how did they get into a situation that they cannot be proud of? Remember that where there's smoke, there's fire. There may be some other deals gone bad here.
If management comes clean from this one, then the drop in stock price may be a tremendous opportunity to buy on the cheap. Just be sure that you measure the time to capture that opportunity in quarters or years rather than in weeks or months.
As an engineer and potential user of RSYS products, I find the company interesting, but I feel that RSYS does not have any earth-shaking technological leads over their competition. While Intel may have the lead in microprocessor technology, their real-time software and board-level products, which RSYS acquired were not the gems of this industry. I could not buy RSYS for their technological edge. |
