posted on
Nov 02, 2006 05:38PM
This a point that has troubled me also. What has
really been the benefit of the secrecy in
revealing the settlement dollars? All it has
accomplished is to dampen the share price and
leave potential investors with unanswered
questions.
Most of us longs, I believe, gave PTSC the
benefit of the doubt because we had assumed the
dollar amounts might be substantial. The thought
was a leveraging tool for future signees.
Unfortunately we were wrong.
I also had assumed PTSC would not empty the
treasury in dividend payments. My assumption was
the numbers must have been substantial for PTSC
to issue 6 cents to its shareholders. Again,
my assumption was wrong.
I am still long this stock because I can see the
value in the patents and the potential springboard
if the proper investments were achieved by PTSC.
I rarely post but my tone towards the company
has been skeptical since the shareholder meeting.
I am not trying to subtly bash the stock. My real
issue is with management. The few decisions they
have made, in my opinion, have not been in the
best interest of the shareholder or the company.
What was the rationale behind issuing all
revenues as dividends? Schwartz is and was, in
my opinion. The BOD did not think the money
would better be used to begin the diversification
process or the sharebuyback? Its management.
They signed the contract with TPL that gave all
control to their only revenue. They have really
done little to promote the company because they
are now contractualy bound to TPL. Management.
I have seen too many CEO's run thru this company
since Woody departed. A lot of dropped balls.
The only constant that I can see is Schwartz.
Until PTSC can unhook itself from the hand of
Schwartz we will be viewed as a potential shell
company, content in issuing options and rewarding
its largest financier and shareholder with cash
in the form of dividends. Only performance by
management can change this perception.
I know this post is negative, but this is my
mindset. I am now a very cautious long.
teremoto