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Reality Check.
1. Complete the audited financials: This year
2. Up list to the highest OTC board: At 4 cents? You really think that is possible?
3. Publicize their company to the investment world: Same question. Who is going to look at a 4 cent stock seriously?
4. Buyback shares: You have any evidence they are even thinking of doing this?
5. Start obtaining some larger contracts: Could happen, but we won't know until it happens. I'm sure they want them also. Who wouldn't?
6. Increase their product line: Something else they may be working on. Who knows?
So what do we KNOW about what and how Virtra would promote itself to the investment community? Looking back the only concrete answer is the Reverse Split. We have ZERO evidence at all that they would consider anything else. So why are we even talking about anything else?
If Virtra does nothing the stock is likely to continue to drift downwards.
With a 1 for 30 reverse split the price climbs to ~$1.20 or higher, opening it up for investment promotion. A lot of would be investors would look at it at $1.20 vs. 4 cents.
And EPS starts to look real with only 5 million shares outstanding.
Andy
Reverse Split, Revisited
Back in March/April of 2011 when Virtra proposed a reverse stock split the PPS was trading between 7 and 10 cents a share, a level not seen since. Presently we are down to 4 to 5 cents, and unless we can get more eyeballs on the stock its likely to remain there indefinitely, if not fall some more.
Like it or not most investors don't even look at stocks selling for under a dollar a share. I have a cousin that manages $300 million who would like to recommend VTSI to his clients but can't, as he is not allowed to even mention anything that sells for under a dollar a share. How many others out there are also constrained by the PPS?
Today we are heading for two years of audited financials but that's not going to mean much on the pink sheets. We need to get back onto the NASDAQ, and we cannot do that at 5 cents a share.
So how about we call for a 1 for 40 reverse split, and instead of looking at why that might fail, we look at why that might succeed?
As someone posted earlier, two other companies that did this benefited, the shareholders came out ahead. Are there other successful reverse splits? Is there an optimal ratio that works best?
We've all been sitting on this board and complaining about how they don't do anything for us. Maybe we have it all wrong. Maybe its what we can do for the company that enables us to finally make money on this investment. I've been a shareholder for longer than I want to remember, and all I ever read about on this group is how awful management is doing and why don't they do something different?
Well maybe we should do something different.
Can anyone see that doing nothing gets us nothing?
Andy
A few more sales...
http://www.marketwatch.com/story/shooting-simulators-acquired-by-artemis-defense-institute-2013-02-19
TEMPE, AZ, Feb 19, 2013 (MARKETWIRE via COMTEX) -- VirTra Systems (pinksheets:VTSI), a leading provider of firearms training simulators to military, law enforcement agencies and other organizations, today announced the sale of a V-300(TM), a V-180(TM) and a V-100(TM) to the Artemis Defense Institute in Lake Forest, California. The new center will provide training to a wide range of clients, including civilians who want to improve their firearms skills using the world's latest simulation equipment.
Steven Lieberman, Vice President of Education and Training for Artemis Defense Institute, said, "Using high grade military/law enforcement simulators by VirTra Systems, Artemis will be Southern California's largest indoor simulation tactical range and classroom training center for law enforcement, military and the general public. While live fire has its place in firearms training, the training capabilities afforded to us by utilizing VirTra's line of simulators is simply amazing. The simulators propel training to new heights in a very safe and non-threatening environment, from basic firearms handling all the way up to advanced immersive tactical decision-making engagements."
The unique new facility is set to open in the coming weeks and, for all simulation needs, Artemis decided to only use VirTra simulation products throughout the facility after examining the other options in the marketplace.
Aaron DeCorte, VirTra's Vice President of Sales, stated, "We are pleased to be partnered with Artemis and we strongly agree with their philosophy that both private citizens and law enforcement professionals have a responsibility to train in the most challenging and effective environment available." Mr. DeCorte continued, "VirTra's growth in the commercial marketplace is the direct result of producing the most innovative, immersive and intense simulators available today."
Where is this wall at .055? I find a wall in the .065-.07 range, based on Fibonacci from the 12 cent high in early 2011 to the recent bottom, as well as the down trendline from that same 12 cent high.
Andy
Just fired this off to Bob and Rudy:
Join the conversation about gun control! If gun owners were REQUIRED to take a course in how to use their guns and were tested in a simulator on their use of said guns it might reduce gun violence. Of course we all know which simulator they would need to be tested in.
We have to take driving lessons and then pass a written and driving test to get a license to drive, why not the same for guns?
Including borrowing money and going into debt? How much? And who is going to loan them funds to do this?
What I asked for were practical suggestions, not fairy tales.
What do other small companies do that is successful, beyond the basics of making a profit and growing that profit?
So they should go to the bank and borrow money to buy back stock? $100K retires about 1.3% of the stock, do you really think that's going to do much for the stock price?
So what exactly can Virtra do to effect the stock price?
I've read complaints on this board, (mine included) about how Virtra is not doing anything proactive to increase investor interest in their stock.
What can they do otherwise that has a proven track record to work, especially because then ARE a pink sheet stock and are going to remain that way for at least another 6 months.
What can they do NOW that is realistic? I don't want to hear more BS about listing elsewhere etc, we've heard all of that ad nauseum.
What I want to know is what they can do today to increase awareness of the company and perhaps get more investors on board which would presumably increase the stock price.
I've seen posts about the lack of shareholder communication, what else can they do and how?
You don't think a well off gun happy Republican would not want their own virtual shooting range in their basement? Say if it only cost them $5000 - $10000 for a lane or two?
How many flat screen TV's got sold when they cost an arm and a leg?
I looked this up. $15K in 1996. They did sell.
I think there is a HUGE potential market for this that so far nobody has addressed. Its obvious there is a lot of interest in this just from the GM installations we've heard about. And of course the price will come down as the volume goes up.
Sometimes you just have to go out and create a market for your product.
Virtra for damn sure needs to do something or else the SP is just going to keep drifting down. The police/military market just isn't big enough for a company like Virtra to gain much of a market share, considering that they have multiple competitors in it.
How may competitors in the civilian market for the Virtual Range?
Maybe someone who is a member of the NRA should ask about this to see if there might be a market. Maybe the shareholders have to force Virtra to see what it doesn't want to see.
Andy
We need Lockheed to buy this company.
Eight cents a share would work for me, Lockheed wouldn't even notice the cost. Better that than watching it drift down to nothing. What I can't figure out is why they cannot execute on the plan. They have the best small screen simulator on the market yet can't make any inroads.
Looks like Virtra is doing its classic crash and rebound scenario where it suddenly falls to 4 cents then rebounds just as fast, to start another rally. Last time it did this it got up to 8 cents, maybe a favorable earnings report will get it higher.
I'm seriously thinking of dumping my shares if it does. I'm tired of the endless excuses from management and everyone else.
Andy
Probably not, but in 2009, on the Pinks, it shot up from 4 cents to 14 cents on the Lockheed news, which turned out to be nothing, after all. I'd be very happy to revisit 14 cents today, I could dump the stock for a tidy profit.
On another note something changed at Yahoo finance because the chart only shows the last month. THAT would scare anyone off.
I'm going to wait for the 3rd quarter numbers to come out, which I assume will be by November 15. If nothing happens to the SP then I may just bail. Been with VTSI for what seems like forever but they just can't seem to get their act together enough to move the stock out of the 6-7 cent trading range.
Andy
Seven cents today. Strong resistence at 7.5 cents, if it can break through that its anyone's guess how high it can go.
Hoping....
Andy
Virtra is located right next to the largest supplier of handguns for US law enforcement agencies. They can test it them in the Virtra booth!
Way to go, Virtra!
Andy
Looks like someone really wanted out. Four trades totalling 120K shares at 6 cents. Not sure how they didn't depress the price even more.
Looks like Virtra is no longer bound by any Gander Mountain restrictions on competition.
Andy
VirTra Reports First Quarter 2012 Profit. (Note that they don't compare to 1st quarter 2011)
http://www.marketwatch.com/story/virtra-reports-first-quarter-2012-profit-2012-07-30
TEMPE, AZ, Jul 30, 2012 (MARKETWIRE via COMTEX) -- VirTra Systems (pinksheets:VTSI), a leading provider of firearms training simulation systems to military, law enforcement agencies and other organizations, today reported financial results for the first quarter of 2012, ended March 31. The unaudited financial statements are available on VirTra's website and here.
During this period, VirTra realized a net profit of $246,046 compared to a net loss of $692,761 for the full year ended December 31, 2011 (audited).
VirTra recorded gross revenue of $2.6 million in first quarter 2012 compared to $7.9 million earned during the entire 2011 fiscal year. The company also improved its gross profit margin during the first three months of the current year. Cost of goods sold for the quarter was $0.8 million yielding a 68 percent gross profit margin, contrasted with 2011 annual results of $3.8 million in cost of goods sold and a 52 percent gross profit margin. VirTra's profit margin fluctuates from quarter to quarter and is influenced by a number of factors such as vendor pricing, improved production methods, composition of customer orders, international orders and exchange rates.
VirTra's general and administrative expenses during the first quarter of 2012 were $1.5 million compared to $4.8 million for full year 2011. General and administrative expenses as a percentage of revenue declined slightly during the quarter to 59 percent from 60 percent during 2011. These expenses were comprised of investments into support and new scenarios for current customers and development work for new products, software and simulator content as well as targeted sales and marketing efforts to attract new customers and distributors in various market segments.
Mark Skidmore, VirTra's Director of Finance - Corporate Controller, commented, "The company is happy to report positive financial results for the first quarter of 2012. Also, in the two-and-a-half months I have been in charge of accounting, I have worked with the senior management team to bring the company current in its financial reporting. I am pleased that with the completion of the 2011 certified audit recently and now the unaudited first quarter 2012 financials, we are on target to release second quarter results on time on or before August 14."
Mr. Skidmore continued, "I personally look forward to applying my experience and expertise to implement new methods to augment VirTra's existing accounting and financial reporting systems. We will strive to develop significant metrics to assist management in leading the business to greater achievements."
From The Miller Group:
"Yes, as I mentioned we were waiting to get sign off from the auditors including second partner review and then would release as soon as we had that. As of yesterday morning when I responded to you, Friday/today was the conservative estimation but we in fact were able to get sign off yesterday afternoon and so we were able to release a day earlier.
Moving forward, the company anticipates getting Q2 completed no later than 45 days after the 6/30 quarter close and sees no reason that Q3 will be released later than 45 days after the 9/30 quarter close. Beyond that, the next financial audit release for year end 2012 should be no later than 90 days after 12/31/12."
They already indicated Q1 by the end of this month.
Andy
I asked them why the delay and they said they needed the auditors to sign off on the audit. They were not sure it would get done before tomorrow or Monday, as it happens they signed today.
Andy
If we are lucky we get 2011 tomorrow. Otherwise Monday. Reminds me of The Gang That Couldn't Shoot Straight. Not directly Virtra's fault, it's the auditors that are slowing it down, but still....
VirTra is still projecting by the end of the month to issue a press release for Q-1 2012 unaudited financials and expects to issue a press release on or prior to Aug. 14th for Q-2 unaudited.
Andy
The company anticipates the 2011 audited report will be released the week of the 16th. Unaudited Q1 '12 is currently expected to be issued around the end of the month and unaudited Q2 '12 is projected to be completed prior to August 15th.
I agree. People training in these simulators KNOW if the images are people vs. constructs. From a psychological perspective if you know they are not real then you act accordingly. That's the Virtra advantage. If they are CGI then the human mind thinks "Its only a game" Real people with real responses produce real results.
Andy
Virtra is not a developing company. They've been around for a long time, have product, is established in their market.
We have witnessed a whole string of incompetent executives come in and leave. Its not easy to find people. Bob is doing OK, if not great. If the Lockheed deal works out half as well as we expect it to then Bob will look like a genius.
Andy
Virtra is famous for this. Spikes down to 4-5 cents just before a big move to the upside. I only wish I had the loose funds to put in a permanent GTC at these prices.
Andy
Something must be in the works. I can't remember when the SP went up with no news like its been doing the last few days. The Lockheed connection implies good news, but without actual sales it doesn't have much meaning.
Somebody knows something and they are buying on it.
Andy
One thing I have observed about the response to Virtra's simulators: User's are 100% convinced that its the BEST simulator on the market. Military, law enforcement, civilian training. Everyone.
Everyone that tries it out claims they have the BEST product on the market.
And also, from what I can gather, the least expensive when you combine cost and effectiveness.
So how long can this go on without Virtra increasing its market share?
What I'm curious to know is whether or not Virtra has collected all these testimonials from each and every person using their product and used them in their marketing? Nothing beats customer experience!
Andy
Looks like a lot of selling taking place. Either because of buying in the morning or people seeing a chance to get out while they still can.
I'm reminded of the last time they made a big announcement about Lockheed. Stock went from 5 cents to 14 in a couple of months. Finally fell off when it became obvious the three sales were it.
I think it might be different this time around....
Andy
I just posted VTSI to the Ino.com forum in response to a discussion about gold:
http://www.ino.com/blog/2012/05/this-is-the-bottom-for-gold-john-hathaway/comment-page-1/#comment-121428
Might see some fresh attention. If we all do the same then we might get more investors interested in VTSI. Getting the Lockheed agreement has a LOT more staying power than GM, and means more to more people.
Why wait for Virtra to promote Virtra?
Andy
We are using .NET/C# in our software, its the latest, easy to use high level platform/programming language from Microsoft. My brother loves programming in it. Much faster than the Visual Basic it was originally written in.
http://en.wikipedia.org/wiki/C_Sharp_(programming_language)
Andy
Something to do with inside information?
Andy
Rudy Miller called me a couple of days ago at Bob's request. We talked for a little under a half hour. Rudy emphasized that all he can do is advise Bob on what to do, he has no direct authority to institute change.
He did say that one requirement for him to get involved in the first place was an audit of 2011 financials, partly for uplisting and partly so they can go to the bank for financing.
He wasn't happy with the price drop, especially because he cannot buy in at that price.
As for the fiasco with the controller leaving and everything else that has happened, welcome to small business. But to put this in perspective, think Eastman Kodak. Big successful company completely missed the digital camera age. Virtra is still producing the best small solution for training available, and will continue to do so. Its only a matter of time before that really big contract comes along. Do you want to be out of Virtra when it happens?
Andy
Is there some kind of forum at the NRA where you can ask the members if they would want the Virtra Range in their basement or outbuildings? I have to believe that the market for this must be pretty good, but Bob does not want the support burden. Told him to do it through a subsidiary but I don't think he will unless there is a well defined demand.
Andy
My cousin is a registered investment advisor and manager. Something around $100 million under management. He is not allowed to talk to any of his investors about any stock that sells for less than a dollar a share. Very strict regulations on this.
Andy
Anyone on this board belong to the NRA?
A 15 to 1 reverse split would raise the price to $1.05/share which immediately opens it up for investment by a wider audience. Shares outstanding would be about 10 million+.
How long it would stay above $1.00 is anyone's guess. All depends on whether or not management can deliver on sales.
Andy
I asked Virtra if sales stopped in the first quarter....
No; sales have not stopped. VirTra has set up some additional internal protocols and formal sign-offs associated with sales and installations over the past few months. (Policies are not public.) Additionally, not all customers agree to allow Virtra to announce a sale for various business or political reasons. The Company may group various recent sales together subject to the orders meeting our internal criteria as well as potential order size transaction or other items management may deem important.
I hope this information is helpful in understanding VirTra's current sales/installation press release process.
Sounds like something Alan Greenspan would write!
I did suggest they be more communicative in the future. We don't need to know specifics, but it would be nice to know something.
Andy
I look up VTSI trades here:
http://ih.advfn.com/p.php?pid=trades&cb=1253657942&symbol=VTSI&java_vm=sun&java_vm_ver=1.6.0_05
They are all on the buy side, yet the SP is down .85 cents for the day.
Is this some kind of rigged market?
Andy
Since the audit for 2011 is supposed to be done by March 30 I would not expect financials until early April. If they come in earlier, great.
Annual Report for 2010 was released on April 4, 2011.
Andy
Near as I can tell 210K shares were sold at 8.5 cents somehow. I do not understand how that happens when I see 500 shares drop the price like there was no floor. Last trade looks like 10K as a buy.
Andy