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

To: SG who wrote (9876)	8/21/1998 12:43:00 PM
From: Brent	Respond to of 11098

Scott, Thanks for make my point in regard to understanding numbers. Having $24 million in cash on hand is not inherently bullish. Does it cover operating expenses for too long or not long enough? What are accounts payable? What are short term debts? What are long term debts? What are inventory levels? Do they owe anything on the line of credit? Should they be paying a dividend? Did they buy $10 million of supplies the next day? Where is the cash coming from? Is there a better place to put the cash? To blindly say that $24 million cash on hand is 'very bullish' is asinine. And to answer your question, I don't see it as bullish or bearish. $24 million is adequate to run their business as they have done it with less. If anything it might be a negative, because they might able to put that cash to better use somewhere else (R&D, Marketing, Dividend, Invest, Pay down debts, Buy back stock at these insanely cheap levels, etc.) Your 'number analysis' for the cash position is flawed. You can't just look at historical numbers for cash and pronounce this higher number bullish. You must consider every other number involved (i.e. the balance sheet, statement of cash flows, historical levels, etc.). Scott, The Dallas Cowboys might score twice as many points this year as last. Does that tell you anything about how good the Cowboys are? No. They could win more games, they could win less. You can't just look at one number and declare it 'bullish'. Again, please explain why $24 million in cash is 'very bullish'. Brent