I said this weeks ago, when Turley announced the warrant-buyback (you can also read a similar sentence in his shareholder letter):
Swartz is gone soon (in the next weeks).
I'm sure, we'll see no more S&L as a big shareholder of PTSC in the next proxy for the SHM.
My guess is, Patriot and Swartz made a deal in January 2006 (or before), saying:
"You can make around 80-100mio$ with converting all the warrants, selling all your shares and receiving about 10mio$ in dividends - if you step out in the next 18-24 months!"
I guess, it was one of the most important jobs Mr. Pohl did for Patriot to get rid of Swartz, thus I never bought the "Swartz is forcing Patriot"-scenario.
And I'm also sure, it's not because Swartz wanted to reduce risk because of Texas, they made a lot of money and will move on to their next pipe-investments.
The only doubt I have regarding this theory is the agreement from last October (Termination of Antidilution Agreement and Approval rights), which is ending in May 2008.
Maybe it was planned that Swartz would be part of Patriot until this time and now Turley accelerated this with the warrant buyback - or there is another reason, why Swartz received these Approval Rights for a possible acquisition.
Anyway, though this shareprice hurts, I'm still optimistic, it's in our best interest.
GLTA
