Patriot Scientific Corporation (OTCMKTS:PTSC) Cools Down
A great Thursday session sent the stock of Patriot Scientific Corporation (OTCMKTS:PTSC) over 60% up, but Friday saw the inevitable cooldown and after running even higher at the open, the ticker spend virtually the entire day moving down, to close 9% down by the bell.
The green spike was triggered by a PTSC press release, concerning a patent infringement lawsuit against HTC Corporation. Patriot came on top after a prolonged legal battle that began several years ago. The news release also mentioned that there are several other products by other manufacturers that ‘work the same way’ as the infringing product of HTC, hinting at potential future lawsuits, inspired by the successful outcome of this one. PTSC is currently engaged in additional legal proceedings, alleging infringement of three of their patents – arguably the company’s most valuable asset.
The announcement triggered an immediate rally and on Thursday daily volume shot up to just over 7 million shares – far more than the average volume for the past few months. After the huge percentile jump, it appears on Friday a significant number of shareholders decided to cash out their stock, as share volume was twice that of Thursday. PTSC opened even higher than its previous close but from that point on, it was a race downhill, with large volume spikes in the morning that quickly sent the price below the close value, then a further 9% by the closing bell.
The pullback is not exactly surprising, as the jump was obviously caused by excitement and a single news release that doesn’t specify how winning the lawsuit will affect the material situation of PTSC. Additionally, such huge upward moves are difficult to sustain. Even though the stock turned red, the drop was hardly devastating and the majority of people who bought during the climb are still sitting on a reasonable profit. It’s really difficult to guess which way PTSC will head from this point on, but a further retrace down is not unlikely, so caution is advised.
Other stocks that moved considerable volume on Friday include Titan Pharmaceuticals, Inc. (OTCBB:TTNP) who closed a good 14% up and stopped at $0.94. TTNP stock has so far put up over 20 cents in just three consecutive sessions. Solar Power, Inc. (OTCMKTS:SOPW) who surged unexpectedly and had a 36% green close, ending Friday at a quarter of a dollar per share.
