Let me state at the outset this is only my opinion.

I reread Fatwollit’s fine post of last night and started thinking about his comments. I do not post much since others seem much better at expressing view points similar to mine. However, in one of my earlier posts I mentioned how it just might be possible that one of the results of the J3 settlement was the realization that the MMP is not going to be the cash cow we envisioned at least as I saw it when I began buying in 2003. As a result, the board realized that something else must be done. Clearly Turley was not the man for the job and a more seasoned man or woman was needed to build a company with a recognizable revenue stream that can grow as the business grows. Hence, Rick Goerner was named.

PTSC is now following parallel paths to build this company. The acquisitions and mergers with Crossflow, Iameter, et al, are very promising. They appear to be on the cutting edge of a dire need for information accessibility and security in key industries, namely health care and security industries. They already have projects and installations underway. My only question at this time is how strong are they vis-a-vis the competition?

The other path is the continuing licensing of MMP. There are a couple of scenarios to look at but onescenario I refuse to look at is the rejection of the MMP by the USPTO especially in light of the German Patent court decision. To paraphrase the Borg, “Rejection is not an option.”

Now there seems to be a number of people who have said that once the patents are recertified then things will really take off, implying an influx of very large fees. I am not so sure that will be the case. My expectation is that the patents will be recertified and there will be a large number of licenses. I am just not sure it will be the huge revenue we thought it would be. Recall the expectations when the initial announcement of the J3 settlement. I can offer no evidence or real data to support the notion that fees will be lower than expected. It is merely a feeling I have with respect to the J3 settlement.

My feeling is that PTSC may be close to its proper price per share (PPS) based on their current revenue. Licensing revenue is discounted or ignored because it seems to be arbitrary. It’s like found money in the sense one finds money in their pockets as they get ready to do laundry or found in the cushions of a sofa or chair. That can and should change when the patents are recertified but it just may not be as much as we had hope for. Anyway we shall see.

I do expect revenue to rise and the PPS will rise along with it. Assuming, of course, the overall economy turns around and the markets start an upward trend. However, the rise will be not be like a rocket as some have suggested but rather at a much more measured pace.

Back to lurking!!!!