I know PRST well, have toured their facilities, and work in the industry. This co has little future if you know the industry.
1. The market for DI is getting squeezed from both sides and continues to shrink.
2. Attempts to vertically intergrate have failed (Precision & ABD).
3. Acquisitions have cost the company dearly in hard dollars, resources and focus.
4. The value prop of ABD is gone.
5. Major cuts in R&D investment-- no new tech or product to follow-up on DI. No product to fill ABD channel. Nothing significant in the pipeline for the future.
6. The print industry is in terminal decline. Commercial printers and print equipment manufacturers are spiraling donward with the end of an era.
7. There is little to support its existing valuation.
I believe you pegged it dead on . This is a dying industry and presstec is confusing investors with that catch word "digital tecnology" the only digital thing they really have is to make a digital plate for an old offset press. Sort of like Buggy whips and Typewriters...
Six6pt, Would be nice if you knew alittle about what you are talking about. PRST IS NOT TAKING THE PRINT WORLD BY STORM admittedly. They are currently just a nich player. But they have a very good answer for many of the printers problems. Smooth digital work flows, perfect registration of the plates themselves, Less skilled operators required to run the jobs. Fast turn arounds etc. to name afew. It all figures in.
But the real question is can they grow their nitch? I honestly have not seen strong evidence they can.
It is not necessary for you to bash, and reply to your own posts and bash again. People here are being careful. Think about your own personal morral behavior.
It is interesting that in the past when I and others posted similar comments the raging bulls came out to attack. Now they all seem to have disappeared except Charles to come out with the usual accusations of short selling and paid sabatour with a hiddend agenda. What happened to Peewee, he is so quiet?
But even I have to moderate your doom and gloom a little. The market for DI is getting squeezed but it still exists and sales can enjoy moderate growth, as they have been. Particularly on a global basis.
PRST is working on new DI offerings, how good they will prove to be in the market remains to be seen.
The print industry is in decline, but it is not terminal. Print will continue to be significant long after we are all dead and gone.
PRST is not dead, it will never be the big success story the bulls have wished but it will muddle along. The new management is definitely an improvement, but the game plan is no doubt to tie a bow on the pig and sell it.
One of the things they are trying to sell is the "access" to the small printer market ABD provided, but its value has declined, particularly as you observe integration of the acquisition has failed.
I don't agree about the selling part. In thinking about what the new management accomplished at Kodak - integrating numerous companies into one organization - maybe they were hired to accomplish the same task at Prst. Presstek's product offering, outside of the DI press, which comes with its own bag of rocks, doesn't seem to lend itself to a sale, but rather a merger or series of mergers.
In the prepress to pressroom diagram, Prst is missing workflow, proofing/large format, and color management. And its plate manufacturing, re Aurora, is the pits. So maybe any one of those products are a potential merger target.
Just wondering if you shorted Presstek before your gloom and doom post.
When did you tour the Presstek facilities? If so does one visit to their place make you an expert on their operations?
Specifically what makes you an authority on the printing industry, and what allows you to know so much about Presstek, and ABD Etc?
Jeff and Jeff both left prestigious jobs at Kodak to take over the reins at Presstek. Would they have done so if they shared your views? They certainly should know more about the industry and the company than you do. My money is on
J & J.
Are you a paid basher or shorter? if not, what motivated you to make such a damaging post?
Something smells rotten in Denmark.
Never shorted PRST nor currently hold PRST. Bought PRST long after ABD, but lost and got out. I can't tell you when I toured for confidential reasons, but I got a personal tour, one on one with M&M. All I can say is that i used to have a financial investment in tech. Not in any way a paid basher (I am doubtful such a thing exists or at least not in the scope you think it does). Worked in the print tech industry entire career.
Regarding J&J, when you work for a company (as opposed to owning it) you motivations are very different. When you own a company you care about profits, growth, long term health (as does a stockholder). When you are a hired exec you care about your personal compensation, power, control, opportunity, challenge, prestige -- you get paid regardless of the true health (although you obviously have good intentions). Secondly would you rather be on board a huge sinking ship that is scaling down (and laying off) where you have little control over its future (i.e EK) or run a small sinking ship where your work maybe able to make a difference and you are given incentives?
Motivation is to help people not lose the money I did. I foolishly ignored what I knew and instead tried to time the 10% up and downs of PRST. My advice...invest in an industry where a rising tide lifts all boats.
How many more years you expect to hold these shares
and expect them to turn around? As per your previous posts
you got in at 2+ so, you are ahead of the game but will
you advocate others to hold indefinitely with dream of
substantial gain? You are a good man and I hope your ship
Since when is this NEW news???
They have been so since May 1996
Sk of the Decade
How many sets of NEW management
blowing smoke up chimneys.
Our only single hope has been Mr Kellogg.
He bails and put the stock certificates on a
roll an take to the bathroom for use.
Every time a candle is lighted it burns out quickly.
We are bah bah sheep.