Patriot Scientific Corporation Recovers on New Licensing Deals

A heavily promoted stock that we have not seen since the beginning of the year reared its head again on a series of PR messages, with rising volume and prices. In the past couple of weeks, Patriot Scienntific Corporation (OTC:PTSC, PTSC message board) has been climbing steadily on rising volume, closing up 31% yesterday.

The company's main activity is selling its patent portfolio for chip technologies to third parties that need such solutions. The portfolio of technologies seems profitable enough, giving the company a wide berth for action with ample resources:

• $4.42 million cash

• $6.9 million total assets

• $794, 592 total liabilities

$891,557 operating loss

As a licensing business, Patriot Science faces a series of infringements as processor speeds and core usage methods may copy the patented technology.

This summer, the company was involved with 13 leading companies, among them Amazon.com and Samsung Electronics Co, along with other tech giants offering new devices. However, the patent program of Patriot Science exists since 1998 and most of the patents will not expire for two more years. It's still unclear how aggressive patent enforcement will work for the company's future.

Patriot Science Corporation is only one partner in the MMP Portfolio Licensing Program, sharing the gains and risks with Technology Properties Limited. The MMP portfolio was created by the TPL group in 1989 and contains US-based, European and American patents applicable to processor usage in chips,

Despite claiming to hold stable and useful patents, the company's positions seem threatened and its stock is a volatile affair, fluctuating with the press releases of the company and announcements of new licensing. A short boost to its stock was given in March with a no-compensation mail from Penny Trader Publisher.

Penny Trader, the one-time mailer for Patriot Science, has another small promotion, a $4500 budget for Empowered Products, Inc. (PINK:EMPO). The cosmetics company dropped more than 80% since the pump at the beginning of October. Despite the promising data, it is best to estimate how much risk you could take before committing to the PTSC or any other ticker from a promotional email.