Hello David,

 

Thank you for your email.  Our fund utilizes the model from the "Little Book That Beats The Market" which screens all US traded stocks to find those with the best combined ratio of return on invested capital and earnings yield.  Patriot Scientific came up in the model as one of the picks.  Aside from the quantitative model, Patriot is in a very strong position with their patent now that they have several large licensees and a very favorable jurisdiction for their case in Texas.  The judge reviewing their case is known to be very patent holder friendly, and if they manage to win the case they should be able to charge substantially more to licensees.  I went over the case files online and I think Patriot has a pretty strong case, (if not too broad), but if they win there certainly are many large chip makers that have not yet purchased a license.  The Catalyst Value Fund which I manage has been finding a good deal of well positioned growth companies in this market at very reasonable valuations so I'm pretty optimistic about our next few years.  Feel free to give me a call if you would like to discuss in further detal.

 

Sincerely,

 

David Miller

Portfolio Manager

Catalyst Value Fund