Neil:
I think the pain of your recent margin calls has made you dillusional. I read your post with great interest and the hope of something more substantive than "I believe" and "I know" for support for your positions.
As your post is rather lengthy, I will respond to certain highlights. But first, your argurment that the bears are responsible for the recent drop is absurd. The bears did not announce a reduction in orders from an 80 % customer,nor did the bears pay 2.9 mm to settle charges of fraud and misleading investors. These "black hats" belong to mgmt and Presstek and no one else.
You state: "All of us know that the short position has certainly increased.
Obviously, there is a nice profit made if they decide to cover at these prices. So
what spark would charge the recovery..........and the resulting stampede to cover
and accumulate the shares?"
Neil,Even though you state "all of us know", you couldn't be more wrong. The short postition has decreased dramatically. 4 weeks ago, the most shares availiable to borrow, ie. short, was 5,000. Yesterday, I was told I could borrow 100,000. Given the recent drop, many shorts I know, have covered portions of their positions. My guess is the present net short position is less than 4 million shares.
As for your explanation of why management did not disclsose the Heidelberg issure and correct forecasts, one need only look to mgmts insider sales during the period (2.9mm was cheap):
From the class action complaint:
"Presstek directors and officers sold a
substantial number of shares of Presstek stock, during the Class
Period at artificially inflated prices, as follows:"
Date
of
Sale Total
Name 1996 Shares Sale Transaction
----- ---- ------ ---- -----------
Bert DePamphilis 03/29 3,800 $111.75 $ 424,650
Director 04/10 1,500 $114.00 171,000
----- -------
Subtotal 5,300 595,650
Robert Howard 03/28 1,000 $111.25 $ 111,250
Chairman of the 03/28 3,000 $111.50 334,500
Board, Director 03/28 5,000 $108.50 542,500
04/03 10,000 $113.50 1,135,000
04/03 4,000 $113.00 452,000
04/03 6,000 $113.00 678,000
04/03 5,000 $114.00 570,000
04/04 5,000 $116.00 580,000
04/04 1,000 $116.50 116,500
04/08 2,000 $111.75 223,500
04/08 5,000 $113.25 566,250
04/08 4,000 $112.00 448,000
38
04/08 5,000 $112.00 560,000
04/08 5,000 $112.25 561,250
04/08 5,000 $112.50 562,500
04/12 1,500 $111.75 167,625
04/12 5,000 $111.50 557,500
04/16 2,500 $112.00 280,000
May 43,500 $180.00 Est 7,830,000
------- ---------
Subtotal 116,000 $16,276,375
Harold N. Sparks 03/26 1,000 $106.75 $ 106,750
Director 04/03 1,000 $116.50 116,500
04/09 1,000 $115.75 115,570
Subtotal 3,000 $ 339,000
Robert E. Verrando 04/04 1,000 $116.00 $ 116,000
President, Chief 04/04 1,000 $116.75 116,750
operating Officer, 04/04 2,000 $116.25 232,500
Director 04/04 1,000 $115.75 115,750
04/04 5,000 $115.88 579,400
------
Subtotal 10,000 $ 1,160,400
Richard William May 12,100 $180.00 Est $ 2,178,000
Chief Executive
Officer, Vice
Chairman of the
Board, Secretary,
Director
Subtotal 12,100 $180.00 Est $ 2,178,000
Lawrence Howard May 43,500 $180.00 Est $ 7,830,000
Director
Subtotal 43,500 $180.00 Est $ 7,830,000
TOTAL INSIDER SALES
DURING THE CLASS PERIOD 184,600 $28,379,425
Cont next post. |
