I think PTSC is a dividend play, though there's an excellent chance
for growth.  Reuters rates Patriot Scientific Corporation (PTSC) as an
"Outperform", which is up from a "Hold" at the end of July 2007.

PTSC is a "cash machine".  It co-owns and licenses its patents for the
design of microprocessor chips in partnership with another
Intellectual Property overseer.  Lots of other users already
incorporate PTSC's proprietary elements:  they either pay up for a
license, or PTSC sues.

As the licensee lineup has increased, so has PTSC's cash hoard.  It
has $21.6 million cash on hand (that's $.055/share) and no debt.  It
doesn't really "make" anything, but money:  no stores, machinery, only
19 employees, and no infrastructure to depreciate.  They are chugging
along at a rate that suggests they will have $.08-$.09/share in cash
by the end of 2007, i.e., the net income is really flooding them!

As a dividend play, in 2006 PTSC paid out $.06, which is probably why
the stock was in the $1.00/share range (it hit $1.69, but has been a
slow loser since then).

So far this year, they've paid out only $.02.  If that's all they do
in 2007, that's about a 4.2% dividend yield and the share price will
go nowhere.

But PTSC just announced that dividend determinations will be made semi-
annually.  So, in October 2007, they should announce what they will
pay out next.  My guess is that PTSC will part with $.02/share of the
$.055+/share cash they have accumulated by that time.  If there is no
price change, that's a yield close to 8.5%.

Since last year, shares have fallen back to the $0.45 - $0.50/share
range.  So the key to PTSC share price is to guess what happens with
all the cash they generate.  PTSC just recently started paying taxes,
slowing growth in shareholder equity per share ... which is still up a
whopping 86% YOY.  Whether they use their cash wisely is the question.

I think that, if the semi-annual dividend goes up to $.025 - meaning
$0.05/share/year - the price will rise to $0.59/share.  That's 25%
share appreciation, plus an 8.5% yield.  Seems pretty sweet to me!

Dave