After a nice showing at the industry's largest tradeshow - Graph Expo, Presstek is finding itself embroiled with aggravating investor concerns and lawsuits which the company claims are baseless. Business Week reports that a large investor, John Bendall president of Hermitage Capital, has urged the board to hire an investment bank to help find ways to stop further erosion of shareholder value. CFO Moosa E. Moosa says the board will act on the letter.

The company will also have to deal with the lawyers trying to get shareholders to join a suit claiming Presstek misled them after revising earnings downward in September. That should be easy to overcome - but there seems to have been some unusual trades a couple days before Presstek warned about their earnings. The stock fell from 7.70 on Sept. 27 to 6.23 on Sept. 28 under heavy trading. The profit warning was released on the 29th. An explanation will no doubt be needed as to who was selling before the annoucement.

Presstek has great technology and solid management. Plus experts like Dr. Joe Webb think industry trends and Presstek's portfolio will could collide for nice earnings in the future. A distraction like this could be a challenge in the short-term, but profitable for investors. Larry Solomon, an industry consultant, told Business Week that Presstek is worth $12 based on its projected cash flow.