Is the Patriot Scientific Rally Over? (PTSC)

The Microcap Speculator submits: Patriot Scientific shares (ticker: PTSC.OB) have been explosive by any measure. In two short months, the stock rose over 2000%. The newsflow has been phenomenal, as the company notched significant licensing deals and legal victories.

I continue to like the company. Patriot is no flash-in-the-pan. It has real patents and real licensing deals.

The stock, however, looks like it is ready to take a breather. Waning volume shows that momentum traders are starting to exit the stock. The newsflow will probably remain positive, but expectations are sky high and a lot of the positive news (both present and future) may already be priced in. Finally, all patent licensing companies might find themselves under pressure until the Supreme Court decides the eBay case.

DISCLOSURE: I have no position in PTSC.OB or EBAY. Not a recommendation to buy or sell any security. For informational and educational purposes only.

PTSC 1-Yr Price Performance: