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

To: E who wrote (7639)	1/4/1998 3:23:00 PM
From: E	Read Replies (1) \| Respond to of 11098

Here's one by a very very smart guy, an engineer, that I found particularly interesting.JM To: paul abramowitz (7611 ) From: Thomas J Engelsma Friday, Jan 2 1998 2:39PM EST Reply # of 7639 Paul, Do me a favor, go to your nearest printer (not copy center) more than likely a family owned business, running 2 maybe 3 sheetfed presses. Ask them to see the current plates they are using, more likely a toner image plate. Ask them if there is any way to improve the press to get a better print, will probably say yes, but not likely to spend the money to improve the press, or buy a new press. Ask them if this is the best plate they can produce, probably say no, but they are not going to spend the money to buy fancy plate equipment. Ask them if they can image a 'non toner' plate, probably say no, but we can spend and get one from a prepress house in yada. Ask them if they could image a 'non toner' plate with their current laser printer system, would they. (Conversation here will change and they will start asking you questions) Tell them your shocked because you know of a company that is going to be in the pink sheets at the end if '98 that might be working on material for something like that. -------- >>Assuming a generous 25% decline in profits next year to 30 cents a share<< Huh??? You're expecting sales less than 50 mill in 98 ?? Trailing twelve months at 3rd qtr was 78.5 mil. Later, TOM

To: E who wrote (7639)	1/4/1998 4:10:00 PM
From: paul abramowitz	Read Replies (1) \| Respond to of 11098

JM: In response, though I disagree with your characterization of my "assumptions", I will reply to each point: "Assumption 1" He is assuming that because the two officers of Presstek were (novelly) held responsible for the content of those analysts' reports they "caused to be distributed," they have irreparably damaged the company beyond what its product and performance will soon remedy. (Didn't stop Fuji!)" There is nothing novel about the SEC settlement. Further, the company as an operation wasn't damaged, its reputation among any mutual funds, professional investors was. This will many years to repair. The street does not like being mislead. Fuji is irrelavant. "Assumption 2:He is assuming that Heidelberg is almost history, and it demonstrably isn't. He is assuming that Fuji is unimportant, and that is one dangerous assumption. Heidelberg may well be history, engineering fees have stoped, orders have been reduced, and multiple strategic alliances have been formed with Presstek competitors. What other assumption is there? "Assumption 3: He is assuming that Fuji is unimportant, and that is one dangerous assumption. " Not true, I have stated I don't know what Fuji is, the press release is typically "Presstek vague". I do assume however, that the economic benefits, if any, are more than a year away. "Assumption 4: He is assuming that the reason Presstek maintains a certain confidentiality regarding the detail of its work with Heidelberg and Fuji and others I won't bother to list (he assumes they effectually don't exist anyway) is not what their press release states, that Heidelberg and Fuji require confidentiality of them (for the sort of competitive business reasons explained by Loren, for example,) but because they are liars keeping business secrets from us that Heidelberg and Fuji would be perfectly happy to have revealed to their competition" Close. Presstek has never been shy about Press before. 100 kit shipped, 500th kit shipped, 750 th kit shipped etc. What is interesting, is that as the news become less favorable, they now claim requirements of confidentiality. It may well be a part of the contract, the question is, who asked for it, Presstek or Fuji/Hdlbrg. Further, for 2 years we have read about Prst's inviolable patents. If the product is protected by "ironclad" patents, what is the competition going to do? You can't have it both ways. "Assumption 5: He assumes there won't be significant new alliances with other companies who see what Fuji saw." Wrong, I assume there will be. Its the nature fo the printing business. As for what Fuji saw, perhaps you can define the deal from the press release, I can't. I don't believe any of these alliance will make up the loss of DI shipments, engineering fees and royalties lost as a result of the Heidelberg reduction. "Assumption 6:He assumes Presstek's "wall of patents" is no problem for its competition" I have no assumption as to patents, only market size. "Assumption 7:He assumes if he says the same things over and over again readers of the thread will forget the replies that have been posted to his assumptions, and that those of us who defend this stock will get tired of repeating themselves." This isn't worthy of response.