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Message: My guess to Swartz

My guess to Swartz

posted on Nov 11, 2007 05:10AM
Though there had been some moments in the last year, where I doubted Patriot had a master plan, I'm still confident they had at least one master plan regarding Swartz:

IMHO in January/February 06 Patriot (especially Pohl) and Swartz agreed to reduce the amount of ownership in a time frame of 18 to 24 months (see Termination agreement from October 06) for both entities (SPE and LV, which had TOGETHER nearly 80mio shares and NOT 40mio - see my comments to this topic and the reply from Patriot to my inquiry some weeks ago).
It was a package deal a lá "reducing shares against money".

IMHO - I know, it's a WAG without evidence (but logical business thinking), but it's sunday and nothing is happening...lol -
Patriot paid for this with 
- 30mio warrants in 02/06
- a pr campaign to raise the shareprice, whenever Swartz was selling
- with the warrant buyback agreement in 07

The reason for Patriot to do this: 
Too much shares bought at penny prices (or for free) in one hand are a big "No" on the way to a serious exchange.
Thus it still makes sense to me, that Swartz was selling the last weeks and days (don't forget, he still owns more than 30mio shares).
And thus I wouldn't be surprised, if Swartz continues to reduce his position until May 08 (end of the Termination Agreement).

Why should Swartz have agreed to this?
Well, I think, with a "package-deal" like described, he could be sure to make a huge profit AND help Patriot on its further way, because he knew, there will be a time, when new and different investors are needed to bring the shareprice in really higher dimensions. I still believe, Swartz is a normal, but decent businessman - and NOT the one, who wanted to suck out Patriot to death...

As said before, pure speculation...enjoy your sunday...glta

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