To OTC Journal Members:
VirTra Systems (OTC BB: VTSI) Keeps the Party Going
Investors have been piling into VirTra Systems for the last six weeks, and they seem to have it right. The company clearly has momentum, and its being reflected in the stock price.
The chart looks very similar to a chart of the NASDAQ. The stock simply does not want to trade below its support line. Therefore, until proven otherwise, shares of VTSI continue in a solid uptrend. Congratulations to those who were skilled enough to pick some up when it traded down near support. Today's news has the potential to push the stock to a new high.
When reading the technical tea leaves, volume is another important factor along with price movement. The average volume of VirTra is now about 400,000 shares per day, up from about 100,000 when we first published on the company in July. Over the last few days the volume has dropped prolifically, suggesting anyone wishing to avail themselves of a 100% to 300% profit has already done so. Therefore, with the supply side drying up, demand should send the stock back up the charts.
The demand side of the equation could be answered with today's news, which came out just after the closing bell. VirTra announced the sale of another IVR-360™ judgemental use-of-force training simulator.
This time the City of Chihuahua, in the Republic of Mexico is purchasing the unit to help train its police force. The scenarios will be developed next month for shipment and installation in December. The scenarios will be developed in Spanish, which opens the door to a massive International market for the company's products.
Unfortunately, growing world wide violence and terrorism is driving demand for larger and more skilled military and police forces. VirTra system has developed the state-of-the-art virtual reality training systems, and sales are growing rapidly.
As I mentioned in the last edition on VirTra, the company and its virtual reality use-of-force simulators are featured as the cover story in the current bi-monthly publication of "Police Marksman". I hope to be able to publish a reprint of the story next week sometime. Stand by.
Long term target price (next year sometime): $1 if the company keeps delivering.