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

To: JFD who wrote (7507)	12/26/1997 11:30:00 AM
From: paul abramowitz	Read Replies (1) \| Respond to of 11098

JFD: Yes. The fuji deal is difficult to interpret. But press sales, the big revenue item are falling(Hdlbrg) Presstek has failed in launching the Pearlbrand, instead relying on OEM with Fuji and Anitec, this equates to lower pricing and margins 1998 performance will be substantially below 1997, and possibly below 1996.(IMO) I anticipate a multiple contraction to 8 to 12x eps on this stock and price of 5 to 7.5 before any new splits (unlikely). What multiple would you assign to a high flyer that is declining in both revenues and profits. One last note, if royalties and engineering fees decline with Hdlbrg sales, look for a possible losing quarter. (IMO)