Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Brent who wrote (7226)	12/11/1997 2:00:00 PM
From: Acey	Read Replies (1) \| Respond to of 11098

Brent, i've said this before, and I'll state it again.... I don't think PRST's revenues "from Heidelberg" will be affected that much. For instance, PRST was shipping 40 kits a month before April. Then, for all of the 2nd quarter, they shipped 60 per month, for a huge 50% quarter over quarter increase. However, did PRST's Heidelberg revenues increase by 50%? Not even close!! PRST will continue to grow its revenues by 100% next year. I think that PEARLgold, by the end of 1998, will be big, big business for PRST. acey

To: Brent who wrote (7226)	12/12/1997 5:24:00 PM
From: NEIL MACK	Read Replies (2) \| Respond to of 11098

Brent....What I have learned about Presstek through the years is to rely on their superb management to conduct their business plan in a very carefully orchestrated fashion. The strong growth of Presstek, as a result of this careful planning, has increased this companys revenue and record profits quarterly, making Presstek one of the top 100 growth companies in America. This growth has not been by accident and it has not been in spurts.....It has been steady and well planned. You should be aware that this stock is still being traded based on future potential......those that understand the financial significance of the future use of Presstek products and importance of the company to the industry are quietly accumulating shares. They are not trading this stock on current financial. I assure you, my research has vastly increased my knowledge of this companies technology and the directions it is heading. I KNOW there is great interest from other companies that wish to apply the Presstek products into their own lines. It is simply a matter of time before most press manufactures use Presstek technology on-press. Many printers will soon adapt their existing workflow to thermal solutions and Presstek will be their answer. It was make quite clear at the annual shareholders meeting that the company expects the majority of their future income to be derived from huge plate sales, royalty from the use of their imaging technology on-press, strategic alignments, and constant new ventures. This includes HDP proofing systems, on-can imaging, laser medical devices, plastics, etc. If you believe this company is PRESENTLY so dependent or reliant on one manufacturer for continuing increases in their revenue, I believe you are dead wrong. From what I see regarding this companies diversification into other increasing revenue sources, Presstek will quickly absorb and surpass existing income received from Heidelberg from the other contributions to income. Certainly, Heidelberg's partnership with Presstek was a very credible introduction of Presstek technology to the industry and a definite leading alliance that set Presstek up for now implementing their technology and new products into the marketplace. You seem to forget.....Presstek terminated the Exclusive Agreement with Heidelberg.... it is not the other way around. It should be obvious that Presstek would not have made this arrangement unless there were other outside interests and that they had knowledge of future Presstek revenue increases to be obtained from new manufacturer agreements. I assure you, in my research, I have found the above to be true. Presstek technology in dry and wet plates and on-press imaging has NOT been duplicated by anyone. Pressteks products are "leading edge" and will be utilized across the world. The upcoming direct imaging press from Nilpeter is targeted as a most certain big hit..... The same with on-can imaging from the Alcoa endeavor. The Imation/PEARLsetter proofer is to become available in the first quarter and has no match. Pittman has many advance orders at $225,000 for the dual system. The stand alone PEARLsetters are also expected to sell well, with duel PEARL units again providing $225,00 revenue to Presstek for the pair. You and the others that have shorted Presstek stock have attempted to apply great significance to the press release indicating the cutback of QMDI kits to Heidelberg. Do you believe sales and installs of Quickmasters have ceased significantly dropped? Do you believe the production of this press at Heidelberg in Germany has decreased significantly? Again....you're wrong! Heidelberg Centers are stating their monthly new sales of QMDI's have never been better! This press is a leading seller and money maker to Heidelberg, has the interest of the print world and will continue to be a strong factor for years to come. This press is only now being targeted for many new markets. Also, Heidelberg is placing many new enhancements on this press, making it an even more attractive solution! As the original increase in kit production was to catch up to the backlog, and this has been accomplished, I can certainly live with 40 or 50 steady kit sales a month.....nearly 4 times that of 1996 levels. All of this equals many, many plate sales. There will be more and more presses imaging plates and at solid reoccurring and increasing income. When KBA/Scitex 74-Karat press begins production in 1998, hundreds of new DI presses imaging Presstek plates will add nicely to the increasing number of other units imaging the patented plates. I see Presstek starting the Catalina line in January (as announced) and due to the available capacity, word is that others may also come to Presstek to manufacture their plates at this new vacuum facility. The new capacity and space is huge for thinking present plate usage. It appears Presstek has planned for this possibility. The largest money maker I see for the company is the new PEARLgold plate.....It is so far superior to the other offerings, it is really the only processless plate for consideration based on the opinion of most people I ask. It will be compatible with many thousands of printers existing press units and is a certain big winner, revenue wise, to Presstek. IMO, this stock will not get hammered in January and April as you imagine, as stated in your post. In my opinion, 4th Quarter will be record earnings. If first quarter 98 is slightly lower than the prior 4th quarter, it will only be after information regarding future upcoming revenue has this stock trading forward in multiples of it's current rate. As it appears those long and short shares of this stock have such strong and differing opinion regarding Presstek's present status and future expectation for continued strong growth, the volatility of the share price will continue to rise and fall again until Presstek decides to provide real solid information (confirmation) regarding upcoming important and material new alliances. It would also benefit shareholders if Presstek were to interject their interpretation of actual value to the company (future product sales etc.) when new project announcement or strategic alignments are made. Also, when royalty is to be paid, (exmp. 74-Karat press) that information should also be included in the company press release. I for one, believe this company will far surpass many of our expectations over the next year. Those that own the stock will certainly be glad they held on.....those that shorted will be terribly disappointed. Neil