What Turley can do to bolster the share price
posted on
Jan 09, 2008 06:32AM
IMO the only thing he can do right now, besides pursuing an M & A, is to give as much information as possible about the patent validation process and giving PTSC more publicity. Giving a guidance may not be possible since he has no idea which company may decide to sign up for the MMP during a calendar year. So he may issue a guidance for 60 million for 2008, assuming 20 companies would sign up for 3 million a piece, but even if 20 companies sign up, if these companies turn out to be small fish that don't use the MMP extensively, then the average could turn out to be 1 million or less which could result in a collossal miss of the guidance.
PTSC is what it is. It has the potential of receiving several hundreds of millions of dollars (translation a few billions of dollars). This process will take time and the amount received per year, per quarter will vary and will probably vary largely. It is not possible to value PTSC by guidance per year right now. Instead PTSC should be valued by the amount it will probably receive which is probably around a couple of billion which values it at around 4-5 dollars immediately.
What Turley has to do is to reinforce that PTSC will in all probablity end up with so much cash in its pockets. To convice potential investors that it will eventually end up with so much cash, Turley has to reassure the public in whatever way possible that the patents are solid and that it will indeed get the money.
The PR's of each license do reinforce the patents in some way and I believe he may have spoken about the patents at the investor conferences he has attended thus far. IMO, he has to continue to do this. A guidance in all probability will not help and neither will issuing dividends. It will be publicity that will draw investors until a M & A is announced.
Also whats up with filing 10Q's on the last possible date? Why not file a couple of days sooner to give investors more confidence in managements ability. Its not like the company has several avenues of revenue right now to complicate filings. File 10q's and 10k's early and portray the company as one that is efficiently managed and does everything well ahead of time.