Hi,

the german market stopped to OVERreact due to positive events of PTSC in late 2006, thus you won't see any reaction besides the normal adjustment because of the different time zones (so far only 2.500 shares traded in GER today).

M&A: 

Though I read the Agreement of October 2006 between Swartz and PTSC a "hundred times", I'm not sure, what the main purpose was, because it states:

"In consideration for entering into the Termination Agreement, the Company agrees to obtain Swartz’s written approval..."  

Where is the logical connection between the "Termination of the Antidilution Agreement" as of January 1st, 2006, the "Retaining of Securities" and these "Acquisition Approval Rights"?

Why was it so important to Swartz to receive these Rights? And if it was important and still is, my guess is, that a final M&A activity might be AFTER 05/31/08 (= termination of this agreement).

Another point supporting my view are the financials: Though PTSC had about $ 18-20mio in the bank and will hopefully arrive in the three digit numbers in April, the question is: How long did they know, how much money they will receive?

IF the start of the silent period at the beginning of November was the first time, PTSC got an "impression" of the amount of the upcoming license money, then I doubt, they are able to finalize a M&A in between four, five months.

It's like you go shopping and don't know, how much money you have, until you go to the cash desk. How do you know, what you can afford?

The solution could be, that PTSC had several candidates for M&A, dependent on the outcome and the money they recieve until a given time. But there still remains the question:

Is it better to wait until you have a big hand full of cash to buy something really great (what the market percieves as great) or do you buy smaller companies - maybe with great potential, but the market reacts disappointed (look at Holocom)?

Thus I would be surprised to see a significant (=impressive) M&A activity in the next 2-4 months - but isn't it time soon for some surprises by PTSC...;-)?

Enjoy your day - glty