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Message: Re: How can this be? - leck - SGE
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Jan 08, 2010 12:10PM
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Jan 08, 2010 04:33PM
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Jan 08, 2010 06:23PM

Divys... IMO and many others (as has been discussed ad nauseum) believe they were simply masking a direct handout to Swartz.. as 'special warrant holders' were included. After those warrants were converted and sold.. the divys disappeared.. in fact the announcements of the divys did drive the share price.. also benefiting Swartz as he dumped shares. Those who now suggest PTSC should revert to a divy only company have had 2-3 yr track record of witnessing just what PTSC has done with the MMP revs.

Warrants... Swartz was the main holder of warrants.. upwards of 150 million... which he converted to shares and sold on the open market.. not costing PTSC any money (outside of divys).. only killing every upward shareprice movement for yrs... Convertible Debentures were repurchased by PTSC but if I remember to the tune of about $5M+/-(?)... some warrants may have been repurchased but only a fraction of what were converted and sold...

Share buy back... a good thing, but almost all in the 40 to 85 cent range... now that we are back in the teens again they have no money to buy shares...

Taxes... I believe PTSC had a $30 million bad debt write off in '06 which they took advantage of..

Acquisitions... Wolf stated it best:

posted on Oct 15, 09 07:49PM

This company just amazes me, let me see if I can understand their way of thinking? They invest in Crossflo, Avot Media, Talis Data Systems, and Holocom Inc. and integrate them to form a new entity called “Patriot Data Solutions Group, Inc.” (PDSG) After signing the contract with Avot they find out later that Avot was not going to meet its business plan, or raise capital in the general economic environment they were in and they knew this revelation would impare their investment. They then bring in “Vantage Point Advisor's, Inc.” and on those results it was determined that the investment in Avot was impaired by approximately $867,000. They purchased Talis, and guess what? You guest it!! they found out that Talis was unable to meet its business plan, and raise additional capital, and because of the general economic environment Talis was in they had indications showing that it would impair their investment. They bring in "again," “Vantage Point Advisor's, Inc,” August 31, 2009 to obtained a third party valuation of Talis. They found out and it was determined later that their investment in Talis was impaired by approximately $680,000. Now, lets go to Crossflo, they completed a merger with that corporation and then found out after signing the agreement that certain representations and warranties made by Crossflo, and certain of its principal officers in the Merger Agreement were false when made. On August 31, 2009 they initiated an arbitration proceeding before the American Arbitration Association against three Crossflo principal officers who were signatories to the Merger Agreement for having provided false representations and warranties in the Merger Agreement, and for nondisclosure of information about Crossflo. During the due diligence process leading up to the merger. those three principal officers have not responded to the arbitration claim which is deemed to be a denial of such claim. Then they announced “PDSG” would fall materially short of the $3 million to $6 million range previously fore-casted. They then bring in Baroni Management Company, LLC of Potomac, Maryland to do a strategic assessment of the operations of Patriot's wholly owned subsidiary Patriot Data Solutions Group, Inc. to find out if “PDSG” is a viable company?

Now to me this is ass back-wards, wouldn't you think the management, and BOD of “PTSC” would have gone through and completed an investigation with “Vantage Point Advisor's,” “Baroni Management Company” in the listed company’s above regarding their investment, and mergers, “BEFORE” they use investors working capital in these investments? Maybe this concept is to hard to understand for PTSC, but its simple to me.

I will not get into why the BOD authorized a PR relating to Three new signings on a Monday, then canned the CEO, Vice President Business Development, and a Senior Executive at PDSG on the Friday of the same week. I’ll discuss that Pony later, lol

wolfpackvolt

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The one I would add that you overlooked would be attorney fees... Js.. Ts.. PTO.. but while ridiculously expensive (no offense Ron, et al) don't make up the difference..

Divys $25M (416M+ x .06)

Share buyback $20M (?)

Debentures/Warrants $5M (?)

Acquisitions $20M (I think this is high but ?)

Attorney fees $15M (?)

$85M.. of $125M... where's the rest?

What could we have in our coffers?

I realize what hindsight is... but it is the track record.

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Anyone, please correct this if actual numbers are remembered/known...

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Hopefully the PTO puts to rest current reexams and the MMP can realize its potential..

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Jan 08, 2010 07:53PM
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Jan 08, 2010 09:06PM
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