Presstek (PRST)

Company

"Presstek, Inc. is a leading supplier of digital offset printing solutions to the printing and communications industries. Presstek's DI® digital offset solutions bridge the gap between toner and conventional offset printing, enabling printers to cost effectively meet increasing customer demand for high quality, short run color printing with a fast turnaround time while providing improved profit margins. The company's CTP portfolio ranges from two-page to eight-page systems, many of which are fully automated. These systems support Presstek's line of chemistry-free plates as well as Aeon, a no preheat thermal plate which offers run lengths up to one million impressions. Presstek also offers a range of workflow solutions, pressroom supplies, and reliable service. Presstek is well positioned to support print environments of any size on a worldwide basis." (company website)

prst(2-1)
PRST 4-month chart
prst(2-1)_1yr
PRST 1-year chart

Buy

6 April 2010. Bought 500 at $5.02.

prst(2-1)_pf
Point & figure chart: Double-top breakout in January

Since reporting narrowed losses in March, Presstek has climbed steadily on heavier than normal volume; the few down-days have obviously been profit-taking. That continues a double-top breakout on the point & figure chart in early January.

  • Percentage price oscillator (PPO) — back at the signal line after a long period of divergence
  • Volume — heavier than normal for almost a month

Based on technical analysis, MarketEdge calls PRST a "buy" in a "strong upward trend."

Sell

gain Bottom line
-4%

14 April 2010. Sold 500 at $4.83.

Although MarketEdge still calls PRST a buy, the chart is beginning to say "maybe, but now is not the time." Instead of diverging above the signal line, the PPO line is diverging below it. Given that PRST has doubled in price since late February, I think a hefty correction is probably on the way.