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Alliance called me today. I told them I wanted to vote no for everything but #2. The woman repeats back to me to confirm and says, " So you are voting yes on 1,3,4... I said NO!!! I'm voting no on those. She says sorry, records votes and said I'll receive a confirmnation in 5 days.
Half hour later, another woman calls me from Alliance. Says that #2 won't happen unless #1 is approved and do I want to change my vote on #1. I say NO!!!!
Some shady stuff going on.
It's Alliance. When I got home today, I had a missed call on caller id. They didn't leave a message. Call was from Alliance and a 973 number.
We already have sold to Lockheed and the government. Any other entities hiding out there that can shell out 20 mil for simulators, but won't because we're sub .10?
Also, any salesman worth with his salt can counteract that penny stock crap in two seconds.
Don said in the cc that revenues will double, then triple. All while sub .10.
So, what big mystery kahuna is out there that we need to do a massive R/S to satisfy?
Apparently, Gander does not give a $#!%& what our stock price is. Certainly not affecting our ability to sell to them. We've sold to Lockheed, Gander and numerous branches of the military and law enforcement while at a sub .10 price.
stockguy,
You wrote this in a previous post:
If the R/S fails, and If I were management I would annouce an audit, buyback of shares (10 million), wait 6 months, then try another reverse split with price support.
Question for you and others voting yes. Why vote yes, when we can vote no and see if management comes back with a plan that would be more appealing for shareholders? If given a choice between the current proxy and what you wrote above, which would you choose?
ztect,
Any chance you can submit a shareholder proposal? I like your ideas way better than the current proxy.
For those currently planning on voting yes, if given a choice, would you pick the current proxy or ztect's plan of audit, share buy back, insider buying and then smaller r/s?
I'm with you. Normally I give management the benefit of the doubt. But this whole thing feels off to me. Ztec has shown a much better way in my opinion, so I have to wonder why it's being done like this.
When this R/S first came up, I was dead set against. After the CC and my e-mail exchange with Don that I posted here, I wavered a bit. I'm back to dead set against and will vote no. Just does not make sense to me. Ztec has said it better than me, but why do it this way?
I've been a supporter of Bob and the company and I still am, but I can't go along with this. Since Bob took over as CEO, I've been happy with the moves. Slow and steady was fine with me. No bs, no false hopes, no pumping. Bob put his head down and built this company up. The word that always came to mind was methodical. This R/S proposal does not strike me as methodical. It strikes as oddly timed and ill conceived.
For my fellow longs, remember back in the Kelly days, with the rumors of a "company changing deal"? If I remember correctly, the rumor was a $20 million deal with the Marines. In my opinion, we've gotten our company changing deal and it's Gander. If you piece together the tidbits we know of this deal, it's a monster. On the CC, around the 45:00 mark, Don says that the Gander prototype moving forward is two IVR-300s, two IVR-180s and eight range lanes. Multiply that package by X number of stores and we have a whopper. Virtra gave them exclusivity and had to rush into renting an almost 40,000 square foot facility to make this happen. Gander's CEO said the Academy is a game-changer. They post video of the IVR on their Facebook page every week. With 116 stores and presumably more to come, that is a ton of simulators.
You should e-mail Don and ask. Perhaps if they get enough questions, they'll do another CC.
As of last night, I was a no. I've been thinking about it some more, so I e-mailed Bob and Don this morning. Don replied within 15 minutes and gave me the ok to share his response here:
Sent: Thursday, March 24, 2011 7:16 AM
To: bferris@virtra.com; dandrus@virtra.com
Subject: Question regarding reverse split
Hi guys. Good to hear from you yesterday. Thanks for taking the time. Don, I don't think we've ever spoken, but I have e-mailed with Bob a few times. I've been a shareholder since 2003, back in the Immersadome days. I even demoed the dome. I've been with the company for a while, through thick and thin. I'm very pleased with management and the direction of the company, but I am a little concerned about the timing and size of the split. I did not get to ask this question on the call and I think it will help with my voting decision and perhaps others as well if I can share your answer on the I-hub board.
You mentioned that the current stock price has hurt our chances of getting some larger deals. Can you provide one or two examples where the price prevented us from even bidding or cost us a deal once in a competitive bid? I can understand if you don't want to reveal a customer name, but I'd think the size of the deal and dollar amount would be sufficient for me.
Thanks so much for your time and attention and I look forward to hearing from you. All the best.
From: dandrus@virtra.com
Subject: RE: Question regarding reverse split
Date: Thu, 24 Mar 2011 07:25:01 -0700
Without revealing the specific client: what I can share with you are the 3 current requests..Number 1 is international and is to be quoted at 1.8 Million…Number 2 is also international and is being quoted at 1.2 Million..The third is domestic and has a bid price of 900,000…This is an ongoing issue and cannot be minimized…Thanks for your interest and anticipated support….Don
Sent: Thursday, March 24, 2011 7:36 AM
To: dandrus@virtra.com; bferris@virtra.com
Subject: RE: Question regarding reverse split
Hi Don. Good to hear from you. Thanks for the prompt reply. If you are not opposed, I would like to share your reply with people on the I-hub board.
From: dandrus@virtra.com
Subject: RE: Question regarding reverse split
Date: Thu, 24 Mar 2011 07:43:41 -0700
I feel that strongly so I am okay with sharing..we are not a grocery store and these competitive bids take more than price to deliver and indeed close the sale. When a client is looking for quality companies that can deliver and maintain the product,Share price and listings are both issues….large sales require my personal involvement so this is first hand data…Don
I'm officially a no. As mentioned, I like Bob and the direction the company is headed. I don't think there are bad intentions here, just bad plans and timing. Too many red flags and not enough upside as currently configured to vote for this.
Here's the most recent pr:
TEMPE, AZ, Mar 16, 2011 (MARKETWIRE via COMTEX) -- Don Andrus, VirTra Systems' COO and President (PINKSHEETS: VTSI), today announced that VirTra has made sales of its breakthrough range product, VirTra Range(TM), to two of the company's largest customers.
Gander Mountain has installed or placed new orders for a total of 36 lanes of VirTra Range(TM) -- to be completed by the end of May. These Ranges are or will be in the Gander Mountain Academies as the national rollout continues.
Also, VirTra's longest running distributor in Mexico, Lonexi, ordered two VirTra Range(TM) lanes for its own showroom within hours of seeing the product in action for the first time. Lonexi is also the company that purchased the very first VirTra 300 simulator in 2004. The VirTra 300 simulator is the most challenging and realistic judgmental use of force simulator in the world and Lonexi has purchased multiple simulators from VirTra since then.
Often, new firearm simulators released to the market can take months or years before substantial orders begin to flow. The VirTra Range(TM) product, which is the world's most realistic simulation of an actual live fire shooting range, is receiving remarkable industry acceptance and appears to be meeting an unmet need.
Don Andrus, VirTra Systems' COO and President, said, "VirTra Range(TM), with an exceptional list of unique features and unmatched realism for firearms training in a shooting range format, is accelerating in sales to record heights and filling a significant industry need."
Does any of that sound like a company that doesn't have great products and significant interest in it's products? They have hired a ton of new people and moved into a 39,000 square foot space. So some salesman from another company says don't buy from them, they are an .08 stock and our reaction is to do a massive R/S with no audits or uplisting?
The US military, law enforcement agencies, Lockheed and Gander have all placed orders with VTSI, while they are sub .10 and on the pinks. What other customers are out there, just dying to buy our products but are hesitant because of that?
I've been in this stock since 2004. I've been a strong supporter of the company and Bob. I'm just trying to figure out why I should vote yes. I'd feel a lot more comfortable if audited financials and the NAS listing were coming in conjunction with the R/S.
Why not do the audited financials and NAS listing now, along with the R/S? Wouldn't it give us shareholders more confidence to vote yes? And give the market in general more faith in what the company is doing? Wouldn't that confidence and faith in the company/stock help to keep the share price over $4 for the NAS listing?
What is the benefit for the company of waiting on audits and NAS listing? And why should I, as a long, rush to do a R/S without some firmer commitments from the company in place?
Why would Bob propose a 100-1 split, with no plans for uplisting, unless something big is around the corner? Additionally, why would any shareholder vote for this split unless confident that something big is around the corner?
I've been in this stock since 2004 and I believe in Bob and the direction of the company more than at any other time. But, if we don't get at least a little insight on the call tomorrow on why this is being done now and to this magnitude, no way do I vote to approve.
How does this reverse help Ferris, and the rest of us by extension, unless something else is going on behind the scenes?
Would we be more attractive as a buyout candidate with less shares outstanding? So for arguments sake, if Lockheed was interested in acquiring Virtra in an all stock deal, would the reverse help pave the way?
Trying to piece this together. Bob is by far the largest shareholder. If anybody should want the company and stock to kick ass, it would be him. According to Sir Felix, past conversations indicate that Bob is not a fan of reverse splits. The company appears to be on the right path with increased sales, employees and office space. So, why suddenly do a reverse split, that typically has negative connotations, and such a large one of 100-1? And with no plans for uplisting? Just to attract institutional investors? Seems like there is more going on here than meets the eye.
I live in NYC. Nothing in the mail.
The video I just linked in my previous post is also available on OutdoorChannel.com:
http://www.outdoorchannel.com/Shows/MichaelBanePodcast.aspx?refID=VideosShootingLatest&tpid=1825586091&pid=1Jh5bDUXsWt6Vus7CL_WwIyakLj6B7NR
Getting good exposure.
DownRange.tv and Outdoor Channel mention of Gander Mountain Academy:
http://www.downrange.tv/blog/drtv-weekly-gander-mountain-academy/8798/
Starts at 1:27 of the video.
Interesting that the Gander Mountain order was strictly V-Range and no IVRs. Presumably they will add the IVRs to locations after the V-Ranges.
We know that Gander Mountain is digging the IVRs. How do we know this? Check out the updates in the past few hours on Gander Mountain's Facebook pages. Videos touting the IVRs:
http://www.facebook.com/pages/Gander-Mtn-Academy/130933346969434
http://www.facebook.com/gandermtn
I'm starting to think that Jed does not write these releases. It seems like they feed info to a press release service and they go from there. How else to explain mislabeling your CEO and President? Also, look at this paragraph from the debt-free pr:
In addition, VirTra announced today that they have sold back the land to the original landowner. The land was purchased to permit expected expansion, however, the unexpected Gander Mountain Academy rollout required VirTra to obtain a larger facility in a short period of time, rather than having time to build on the land. VirTra no longer has the liability or asset associated with the land.
No context whatsoever in that first sentence. "The Land". Obviously we know about the land, but if a new investor read that, their first obvious question would be, "What freakin' land are they talking about?". Iceland?
They are renting nearly 40,000 square feet. See this vid:
Another on the scene report:
http://www.defensivecarry.com/vbulletin/showthread.php?t=119607&page=1
Scroll down this link to see a direct mail ad:
http://flaguns.com/showthread.php?11852-Gander-Mountain-Indoor-Range-Lake-Mary
Article with an interesting tidbit:
http://skinnymoose.com/wanderings/?p=2988
We’re hearing the simulator facilities are so good that law enforcement groups in Florida’s Orange, Seminole and Osceola counties are booking off-hour time for their own training. Since they have excellent training facilities, that’s a pretty strong endorsement of the quality of facilities.
Gander Mtn. Academy-Wisconsin job listings:
http://www.simplyhired.com/a/jobs/list/q-gander+academy+instructor
They're loving it on Facebook:
Marie Santucci Frazier: OMG ! my hubby watched that video and has to know if one will be coming to the Niles, OH area. The Gander Mountain store in Niles, OH is one of the best retail stores around. Adding the ACADEMY will make it a BIG draw in the tri-county area. Please consider our area for testing the market. Thanks ! ?
2 hours ago
Gander Mtn. Academy Facebook page:
http://www.facebook.com/pages/Gander-Mtn-Academy/130933346969434
Gander Mountain has over 100,000 followers on Facebook. That's a lot of potential customers. They just posted a Gander Mountain Academy vid on their Facebook page.
http://www.facebook.com/gandermtn?v=wall
Hmmm, what do we have here?:
VirTra has approximately 40 full-time employees.
This new facility is approximately 5 miles from the previous location. This move was accomplished to accommodate the
current growth rate as well as prepare VirTra for future needs. VirTra now occupies the entire stand-alone building which is approximately 40,000 square feet with 80 parking spaces included.
We saw the Cawley Architects headquarters drawings how long ago? A year or so? Compare this video to the drawings. A match on the second floor walkways and similar entryway. Seems like our growth plan has been in place for quite some time.
http://www.cawleyarchitects.com/project.php?name=Brentwood%20Industries
Scroll to the right at this link to see the drawings if you have not seen them already.
Huge new headquarters, shipping orders, hiring employees, multiyear deals with huge corporations and on and on.
Nice!
L-3's President and CEO, Michael Strianese:
Prior to L-3, he was vice president and controller of Lockheed Martin Corporation’s Command, Control, Communications and Intelligence (C3I) and Systems Integration Sector. In addition, he served as acting chief financial officer of Lockheed Martin’s Electronics Sector. Mr. Strianese also spent six years with New York-based Loral Corporation where he held a number of positions in mergers and acquisitions and financial management.
L-3 is a beast. Look at their press releases. Routinely winning huge government contracts. $50 million, $100 million, $200 million. Even the PRs that don't list the price in the headline. Read each release and you see huge numbers. They also bought two companies so far this year:
http://www.l-3com.com/news-events/pressreleases.aspx
Hey Willis. What we know publicly is that they are working with Lockheed on Threat Fire. What we don't know is what else is going on behind the scenes, with Lockheed or any other company. I'm trying to put the puzzle together based on available info.
They have basically quintupled their space in the course of the past year. 30,000 extra square feet seems like an awful lot for any sort of non-guaranteed organic growth. Add in all the new hiring and cash payments on debt and it seems like they have a major deal or multiple deals in the hopper.
The company has been pretty tight-lipped since Bob took over, but connecting the dots we know about, it sure seems like something big has happened or is about to happen.
This time last year,the company had 8,000 square feet of space. We're now up to 38,000. Why the need for 30,000 more? How are they paying for all the new space, both now and in the future?
There's been a recent hiring frenzy. Where's the money coming from to hire these people?
Lump sum payment to the IRS and cash payment to Dutchess. Where's the money coming from to do this?
The company is making some significant moves, requiring quite a bit of capital.
Where is it coming from?
For this kind of spending and the huge increase in facility size, I'm guessing it means one thing.
Lockheed.
They tripled the size of their facilities. Something big is coming. Lockheed?
Yeah, that job posting has been up for a couple of weeks. A few of the other job postings have been removed from Monster.com. Wonder if they filled those positions already.
They've posted 5 job openings on Monster in the last week:
http://jobsearch.monster.com/Search.aspx?co=xw144758591wx#co=xw144758591wx&sort=dt&dv=1&re=11
Safe to assume they've already hired the HR Manager?
Bob said he expects the site to launch this summer. They put at least $40,000 into the site.
Bob does not talk about company changing deals or offer any more info than he has to. I'd be very pleasantly surprised if we get any major news out of the conference call.
We need to connect the dots ourselves:
7 straight profitable quarters
Increased trade show attendance
Lockheed Martin
Extra leased office space
New headquarters in the works
New head of HR
New President
Something is going on behind-the-scenes. What it is and how big it is, I hope we find out a few details soon.