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Message: Re: Let's face the truth - gcduck
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Jan 14, 2009 05:34AM
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Jan 14, 2009 07:43AM
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Jan 14, 2009 08:15AM
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Jan 14, 2009 08:16AM

gcduck:

I respect your opinion, and you may very well be correct in your opinion that the USPTO decision "is the only miracle." However, I choose to view our current situation differently, and in light of the current economic climate, I believe we are building, in a prudent manner, the foundation for future revenue that reduces reliance on the MMP revenue. Yes, I was drawn here by the potential of the MMP. But the MMP continues be a nebulous thing. I remain eager to see a positive outcome from the USPTO, but I have shifted my attention toward the data sharing prospects being assembled by RG and team, and I have been increasingly satisfied that this could work out well for all involved.

In support of my comment regarding the prudent actions of Patriot Scientific management, I offer the following for consideration.

This is an excerpt from an interview with Jack Welch, former CEO of GE:

"Jan. 14--Jack Welch is one of 60 speakers and panelists who will be in town this week to take part in University of Miami'sGlobal Business Forum. Welch speaks at the forum on Friday, but The Miami Herald interviewed the former General Electric chief executive Tuesday to discuss the economy and how companies -- and the government -- should be handling things....

MH: What advice do you have to staying focused on innovation when most companies are just struggling to stay afloat?

JW: First of all, get your balance sheet in order. Take the costs out, get the cost position right, cash is king.

Second, be sure you are taking care of your best people. Be sure you are communicating like you've never communicated before. Tell all your people where they stand, what's happening, what actions are you taking. So overcommunicate.

Third, be sure your best are being take care of. You're differentiating your best products and best people -- while worrying less about your weakest people.

Finally if you've done all that, think about buying or burying your competition. You'll never get better buys than you've got now. Go make some small acquisitions. Buy your nearest competition, steal the best employees from your competitor, because they're probably not taking care of them."

Now lay Jack Welch's above comments regarding what a company should be doing right now against the latest 10Q and the transcript from yesterday's CC, most notably the following:

-We have temporarily suspended share repurchases to preserve cash balances.

-We have borrowed $3M against the ARS to ensure we have the funds on hand, assuming that borrowing at some future time may be difficult or impossible due to a worsening financial market.

-We remain debt-free.

-We are executing a plan to retain key employees within Crossflo, and are evaluating investing in the marketing and operation of Crossflo; a necessary forward-looking action required to maintain and improve our position in this new market.

-RG has been communicating regularly, and the CC is another step toward ensuring communication is maintained.

-We are acknowledging that overly optimistic statements and expectations can be a stumbling block, for both the company and shareholders, and RG's comments regarding the delay in completion of Crossflo contracting efforts and the longer than expected Avot trials and NuPower validation phase work demonstrate this. I acquired the impression that he is quite cognizant of how the slow pace of everything (USPTO, Crossflo, NuPower, Avot) requires active monitoring and adjustment in tactics used in building a solid foundation for Patriot.

And there are other references to be made, but you can begin, perhaps, to see my point. I acknowledge that the current company is not what we thought it would be when we first invested, but I choose not to hang my hat on the USPTO. Toward your point regarding the M&A plan not work very well if we do not have revenues to support it, let alone revenue to support positive earnings and a higher share price, I am not suggesting the path to riches will be a quick one, nor am I suggesting that it will be easy. What I am suggesting is that we are no longer the MMP powerhouse that we once thought we would be. The MMP, in my opinion, still has the potential to provide the infusion of cash that will expedite all other Patriot effort, but like RG in his pie chart reference suggesting the MMP revenue will be a smaller part of Patriot's revenues in the future, I, too, see it this way.

I realize that my posts of late might be viewed as a rah-rah campaign, but I believe in order to move forward, you have to accept the past. If we are frozen by fear when viewing the failing economy, myriad bankruptcies, and unprecedented financial troubles around us, we will miss the opportunity to "bury our competition," to quote Jack Welch.

Finally, I'm not attempting to persuade anyone to adopt my opinion, but I do believe it is reasonable and sure beats selling my shares at a great loss or wringing my hands over things out of our control. Patriot is, in my opinion, being as prudent and proactive as they can be at this point in time under these conditions.

Good luck to all and be well.

Cheers,

DG




Jan 14, 2009 09:45AM
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