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Technology Stocks : Presstek -- Stock of the Decade?? -- Ignore unavailable to you. Want to Upgrade?

To: dkmax who wrote (7152)	12/2/1997 6:33:00 PM
From: paul abramowitz	Respond to of 11098

DK: Actually, his point was he couldn't keep them running profitability. Specifally, he felt the manufacturer had oversold the capabilities of the machine, and that many small printers/print shops, were quoting jobs without an understanding of true costs. As for being "dumb", we all wish we had this companies track record. Sorry I cannot disclose who, but I am contractually obligated not to disclose. As for Heidelberg and the number of presses in inventory, you forget that Hdlbrg recieved a discount on the royalty rate by ordering dramatically more DI kits. Thus it would make utmost sence to build inventory in the last quarter of a year, if the discounts exceeded the cost of carry. Couple this with unexpected cancellations, and you got a lot of inventory. Before you jump on me about cancellations, earlier this year, if my memory serves me, Hdlbrg said it had orders for 900 machines. In July, approximately 500 machines had been shipped by Presstek, and Heidelberg announced "immediate" availability, thus it would appear Hdlbrg either overstated orders, or had cancellations.