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

To: paul abramowitz who wrote (7630)	1/3/1998 6:22:00 PM
From: NEIL MACK	Read Replies (2) \| Respond to of 11098

Paul, first off....I'm sure you have heard the expression, no pain, no gain! I'm fine on this end and to date have had no worries regarding margins. Your response: 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. Paul, the reduction in kit orders was taken completely out of contex by the bears who applied their own ficticious slant to a simple return to normal production numbers. We all knew that the original increase up to 80 kits monthly, was to catch up to the huge backlog of press orders at Heidelberg. The refusal by the bears to even acknowledge the companies increasing revenue from other sources and the 5 time increase in systems imaging Presstek kits was quite clearly an attempt to persuade investors that Presstek was in trouble etc. As you know, it was even reported incorrectly that Heidelberg was phasing out their ties with Presstek. The 2.9 million paid by Howard and Verrando to end the SEC suit was most certainly a victory for Presstek as I stated previously. This effectively cleared the company to get on with it! Most money managers are concerned with the viability of a company and the opportunity it has to earn a return for their investment dollars. You are sadly mistaken if you do not believe Presstek is certain to gain considerably in share price from these levels. You need to spend some time and investigate the sales of insiders at the then current stock prices. The majority of shares sold were from expiring options and represented only a small fraction of total insider holdings which still account for more than 20% of outstanding shares. What is glaringly missing from your post is that the SEC found no problem with the sale of the stock and would have certainly used this allegation if there was an truth involving wrong doing to their shareholders. You state: "Neil, the Stigma becomes worse as is evidenced by the decline in stock price" and "However, the loss of management credibility is now a key factor." Paul, the decline in stock price is from continued shorting of the stock and due to investors that are concerned with the false gloom and doom forcasts by the uninformed Barrons and others and the doubt of who to believe anymore. I agree that Presstek must make a move to instill back confidence in the company and officers. Shareholders certainly want results and need to feel comfortable with the company they invest in. The degree of complaint in the SEC findings are very minor in detail compared to the original charges and are not material at all to the present day activities of the company. The stock will recover quickly when investors return back to this stock. They will do so and the shorts will cover when they are assured that the company is on track to maintain and increase the record increase in earnings. You state: "The shareholder suit is strengthened. Their claims are substantially identical to the SEC." How on earth can you say that! I do not believe you have read the shareholders claims! Better read it again Paul.....most of the bite is gone! Paul, You state: "PResstek price is far from bargain basement at 65 times trailing earnings. Second, What mutual fund manager is going to take the risk on a company who's mangement just paid 2.9mm to settle charges of defrauding shareholders." Wrong again Paul....Presstek has traded for years with a PE in excess of 100. Nothing has changed to cause this multiple to decrease, which will be evident when earnings are announced IMO. In fact, the stock traded with a PE above 1000 for a short time. Many mutual funds and investment companies owned in excess of 25% of the stock, even when Presstek was subject to an on going SEC investigation and an additional NASDAQ investigation. When the stock begins to rise the momentum funds will hop aboard again. Paul, Your interpretation of the Non-Disclosure in a negative way is again wrong. I believe it is as Presstek stated and coming from the companies they have contracted with, as again they stated in a press release. Companies such as Heidelberg and others that are marketing Presstek direct imaging presses appear to be concerned that competition not know what they are doing. Also, as I stated prior, it certainly make sense to not release publicly your next new project until you are assured of the lead in the market. What good does it do to have everyone else begin work on your technological breakthrough if you have immediate competition from the get-go. Paul, Presstek announced 1000 quickmaster kits will be delivered early in 1998. To me, this means by the end of the first quarter. Sure doesn't sound to me like much of a cutback, does it? I expect that Presstek management will soon reestablish their credibility with shareholders and the market and when that happens Paul, this stock will rebound to new heights and you will have covered your short position. I will miss you when that happens. Hopefully you will return to the thread from time to time and wish all the bulls well! Neil