Technically speaking reverse splits do not effect share price.  Techncially speaking forward splits do not effect share price.

The reality is that those statements are just bad science.

Splits are pyschological not economical, and the truth is that most forward splits move share price upwards and most reverse splits move share prices downward at least initially -  and not all the time. However the size of a sustained move up or down has little to do with the split. Rather, it has to do with whether or not the reason for the split was a solid prognistication of future performance.  

Although there have traditionally two reasons why splits move stocks  - Investors view the splits as a signal from the boardroom that more of the same is expected and  investors are most comfortable buying stocks where they can buy in relatively round lot quantities- only the former still has any lasting effect.

Given that most shares are purchased by large institutions the per share price has no real effect on investor sentiment. 

However, and even more so in our post SOx environment, boardrooms are overly  conservative when it comes to offering guidance indicative of improved future results.  However, a forward split indicates exactly this without words from the boardroom  accompanied with necessary diclaimers.  The split also has little out of pocket expense  unless cojoined with an increase in the dividend and/or buyback.  But whether this initial northward movement in the price persists is based solely on actual performance and hs little to nothing to do with the fact that a split occurred.

Again just bad science.

The same psychological effet is true with reverse splits and therefore

reverse splits are a last resort for companies with share pricess  too low that need immediarte lifting for any number of reasons. Like their inverted siblings reverse splits seem to send a signal that more of the same will come. So if the "name"  has experienced hard times of late and has seen its share price fall below exceptable levels then a reverse split signals that more of the same will come and that the share price will not be able to climb to an acceptable level on its own and only a reverse can keep the price higher. 

But when it comes to the Nasdaq,  especially the wild west portion of penny stocks,  where naked shorters run wild artificlaly pushing stocks lower to force a balance sheet poor company's stock price below the investors breaking pont,  reverse splits signal the time to run. The only reason for the split is to lift the price high enough to give some wiggle room for the shorters.  Lift it up sell it down lift it up sell it down.

However, is that truly the case with PTSC.  Sure the S/L investment is a concern,  as any increase in price can be offset with share sales pushing it back down and depressing investor sentiment. But that is because tehre is an absence of investors waiting to buy on the dips. Smart money can not offset the short sellers. Were this a  Bank America or a GE each time a short seller would try to push the stock down  money managers would come in to buy on the cheap. Each week millions of workers feed their retirement and employee stock purchase plans with cash that needs to find a way to the market and stock prices are stabalized with this constant inflow of money,

Would all hope be lost for PTSC, no ability to generate income neither through IP sales nor through technology investment I would agree that the reverse split is counter productive. However, the balance sheet is relatively strong, the IP partnership - which  I beleive has only a 20% chance of a substantial cash inflow- still represents the possibilty of a windfall, and the new technology investments , and hopeful limitaion of dividend and buybacks to a portion of IP cashflow,  indicate a focus on long term viability and strategic planning.

The only negatives I see are the lack of "street awareness" that is caused by the our relationship with the hundred and thousands of "pennies" that are ignored en masse by the "street"

The same company with 40 million shares at 5 dollars each will bring in the necesary investors to offset any sinister shortselling slugs. Should PTSC consider this in the immediate term, I would say no. There's little out there today to draw anyones attention. Should TEXAS be a big win, the reverse might not be necessary, but should  TEXAS drag on or represent a small win and PTSC start to locate some truly commerically viable opportunities then a well timed reverse split would not only be a good idea it would almost be the law.  

It's just good science.

A forward split indicates that the board believes that god times will continue

That is the attraction of the "pennies" While mist would love to boast that they own 50 or 100 thousands shares of MSFT or JPM or GE its just not a reality they'll ever experience. When I held   t 312 thoausand shares of PTSC at 10 cents I focused on taht investment much more than I focused on much larger dollar holdings in other issues. It felt good to multiply how much I would make when the stock would reach 1 dollar after all what's a dollar only 90 cdnts more than a dime. To make that much on 5000 shares of JPM at 32 teh sock would need to hit 90 that's a share price change of 58 dolars!!