Mosaic ImmunoEngineering Inc (CPMV)

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From Dutton & Associates: http://www.duttonassociates.com/research/ptsc/notes/ptsc_note_122007.pdf


Rating: Speculative Buy
12/20/2007
Patriot Scientific/TPL Group and Defendants Settle the Moore Microprocessor Patent Portfolio Litigation;Speculative Buy
Rating Reiterated
Patriot Scientific announced on Monday, December 18, 2007, that TPL and NEC Electronics America, Toshiba, Matsushita (Panasonic),
and JVC settled the Microprocessor Patent™ Portfolio legal disputes with two patent infringement lawsuits pending in the US District
Courts in the Eastern District of California. The terms of the settlement include the grant by the TPL Group of rights under the Moore
Microprocessor Patent Portfolio to NEC Electronics Corporation and its subsidiaries. The parties have agreed that the details of the
settlement are confidential. All parties are pleased with the business resolution of their dispute and will be voluntarily dismissing their
Texas and California lawsuits.
SUMMARY
After the announcement on Monday, December 18, 2007, Patriot Scientific's common stock popped up immediately to an intra-day high
of $0.94 per share before closing the day at $0.80 per share. Since then, the stock has faded to the $0.60 per share range. While the
settlement news is certainly positive for Patriot Scientific and bodes well for future settlements with possible infringers, we believe the
stock price reflects the fact that the terms of the settlement are confidential and investors have to speculate in the dark about the
amounts involved. As we have said before unfortunately, the financial proceeds information for licenses, and now these settlements, is
not available until Patriot Scientific's quarterly results are released. The financial data for the five licenses granted in the quarter ended
November 30, 2007, will not be known until mid-January 2008, and the three latest licenses' financial data and the money from the
settlements will not be available until after the release of results for the quarter ended February 28, 2008. Further, the stock may be
buffeted by tax selling and short-term traders taking profits.
We reiterate our Speculative Buy Rating and our $0.92 price per share target for Patriot Scientific.