Today we had a conversation with Carlos Guillen of Wall Street Strategies to ask his professional opinion on Patriot Scientific Corp. (OTCBB:PTSC).

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This conversation was conducted on June 16th 2008.

Q: What’s your take on Patriot Scientific Corp.?

A: Shares of Patriot Scientific Corp. finished the trading day down 3.92%, continuing its strong down momentum. We are taking a negative stance on shares of this company since we are seeing a lot of volatility in the company’s yearly revenues.

Q: Can you give us an overview of its financial health?

A: In 2006 the company delivered revenue of $10.3 million and in 2007 it posted revenue of $369 thousand. We are not comfortable with this level of risk to revenues, causing operating income to plummet from a gain of $3.91 million in 2006 to a loss of $14.7 million in 2007. On the positive side the company maintains a strong balance sheet with cash and cash equivalents of $21.7 million and no debt.

Q: What’s your technical analysis of the stock?

A: From a technical perspective, we are seeing a strong downtrend supported by fairly high volumes, although the stock appears to be oversold.

Q: Based on this, what would you tell investors looking to position themselves in this stock?

A: Nonetheless, we rather err on the side of caution and advice investors to stay on the sidelines in reference to these shares of PTSC.