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Message: Patent Expiration, then what?

Patent Expiration, then what?

posted on Feb 07, 2010 03:24PM

People have rightfully posted concerns about what happens to PTSC after the patents expire, or when approaching expiration. A valid concern for anyone that actually thinks they'll still be hanging around 5+ years from now. I'm pretty certain that I won't be.

The company has been silent in this regard, which IMO is understandable recognizing that they are most focused on the next 120 days, and the relatively near term that follows.

I strongly suspect that they will eventually again pursue a diversification/M&A plan, and acquire a more mature entity that is already profitable, and that has a reasonably certain future. I believe this was probably the original plan/intent. IMO, Holocom was a pretty close fit to this philosophy. The others, not so much (if at all). It's fairly obvious to me that the M&A and investments that were approved by the BoD were "sold" as being far more mature/certain than they actually were. That's why we paid too much, and that's why there is a dispute with the principles of Crossflow for "mis-representation".

When, this eventuality? When things are much more certain re: the MMP, with too much money in the coffers. Will there be any choice but to act in this fashion? Actually, yes.

They could commit to offer a giant dividend/distribution to shareholders of record at the point in time when they close the doors in order to keep investors interested to the very end (the end being when we've received our last possible royalty from the MMP and any other patents). A giant carrot. IMO, it would work and may be the preferred approach (it would probably keep me hanging around with at least part of my holdings).

As always, everything hinges on the MMP. (Sorry for being redundant).

JMHOs, and I KNOW nuttin'!

SGE

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