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I have a cousin who owns his own small boutique brokerage, dealing in socially acceptable stocks. (under $1 billion) He very much wants to steer some of his high value clients to Virtra, but is waiting on a better presentation of the numbers. That's why I asked Larry to update this page: https://www.otcmarkets.com/stock/VTSI/financials
Would surely appreciate it if a few others would tell Larry/Bob the same.
Bob Ferris <bferris@virtra.com>
Larry Clark <LClark@finprofiles.com>
We NEED more exposure to get the price to climb more than it otherwise would on its own.
Andy
Best birthday present I've had in a long while!
Did this every day I could retire soon.
Andy
I take it you never heard of Google?
https://www.google.com/search?num=100&lr=&hl=en&as_qdr=all&q=%22investor+conference%22&oq=%22investor+conference#spf=1
Modern Round Royalties
Larry: VirTra has been receiving royalties from Modern Round since the first location opened. The rate is 7% of total gross revenues and isn't based on Modern Round's or the location's profitability. The Company hasn't broken it out as a separate line item on their income statement, at least not yet.
Me: So the question now is when are they going to break it down on the income statement?
Larry: That’s a good question and I will add it to the CC list!
Larry sent this in early January
With respect to investor conferences, management has to balance its conference time between tradeshows that have the potential to generate business and investor conferences that introduce the company to new institutional investors. We are still in the process of identifying conferences that we might attend and therefore it’s too early to make any announcements.
BUNK
Apple lost 30% between early to mid 2015 and mid 2016. 30% drops are extremely common in the stock market.
Amazon lost 32% between late 2015 and 3 months later.
I'd be a LOT more worried as an Apple or Amazon owner than a Virtra owner with a 30% crash.
My sense of this stock, which I've been owning and following since 2006, is that it has a cycle all of its own, roughly 300%up, 50% down, repeat. Done this three times since late 2013. Based on that cycle it should bottom out at around $1.50+- a little bit. $1.50 also happens to be where the uptrend line provides support. Obviously all this can change if they get a blowout quarter/year or something else like a very large order. But failing that I'm backing u the truck at $1.50, knowing it is probably going to do another 300% rise after.
One can average down, but if you've owned this stock as long as I have you KNOW its only going to go lower, until it doesn't. Way too much value in it to go where N.B. thinks it will.
Andy
No. All sellers have to be washed out. That has not happened yet. I think it may go down as low as $1.50. I've owned Virtra for a long time. Its a stock that disappoints more often than it rewards, yet over the long haul its been going up, and I see no reason for it not to continue to do that.
Andy
This is classic VTSI price behavior
Nothing to do with the reverse split. Just look at any chart going back more than a few years. Price peaked at around 1.8 in January, 2015 and fell to around 75 cents by October. No reverse split back then, so how do you account for the fall?
Maybe investors were selling because they knew a reverse split was coming? But then the price soared to 3.2, so how can that be?
We are in another correction. So far on a percentage basis a good bit less than previous corrections.
I read Twister's post and immediately contacted Larry at Financial Profiles to tell him about it. He fixed it forthwith. See my post #40473
Its no so much that Larry or anyone else reads the hub as it is that someone on the hub contacts management about these issues.
I do that all the time. Most often I get back a boilerplate response. I suspect defense related companies have to be more restrictive than others. On the other hand, when I ask about Modern Round I get a mouthful.
Andy
Go back and look at the FAQ page again.
http://www.virtra.com/corporate-faq/
Now is the winter of our discontent
Nothing has changed with respect to how the stock trades. Most of the time a reverse split does nothing for a company, price just continues to fall.
But wait. Price was rising when VTSI split, so all we are seeing today is normal trading in the absence of news. Price drifts down.
Some moron sold 1800 shares at the MARKET in one sale. Market makers are not stupid, if sellers do Market orders then why should the market maker give them a good price?
Stock went from 2.21 to 2.50 over three days, looking good today until that one sale knocked the wind out of the sails.
Perhaps the buyers who bought when it dropped before will come back in tomorrow to pick up a bargain.
I'm guessing that's where a fair chunk of the cash is going to.
Generates more sales, so its win-win for everyone.
I bought my first shares in 2004, sold at a steep loss in 2006. Lost track of it for awhile, then came back on board in 2009. I wish I had been paying more attention so I could have gotten back in a little earlier, when it was selling for nothing.
I cannot really complain.
I bought back into Virtra in mid 2009, and later. Based on my 2009 purchases I've been making a 30% annual return on my investment. Not bad for a pink sheet stock that doesn't do much for its shareholders other than make money.
Go back and look at the charts.
For the most part the first 3 months of any year has been a nonstarter for the stock price. Most of the gains, or losses have occurred during the rest of the year.
Promoting Virtra to Institutions
I asked Bob and Larry about this, Larry replied with:
With respect to investor conferences, management has to balance its conference time between tradeshows that have the potential to generate business and investor conferences that introduce the company to new institutional investors. We are still in the process of identifying conferences that we might attend and therefore it’s too early to make any announcements.
The obvious question I have to ask is are there other ways to do this than going to a conference?
If they really want institutions to buy then they need to step up to the plate, which is why I asked.
I wrote to Bob and Larry, asking what they planned to do to promote the company to institutions. Bob was on vacation so Larry could not ask him. Larry's response:
Thanks for the email. Bob is out of the office this week, so I will discuss it with him next week.
If I don't hear back this week I will resend the email.
From December 1, 2015 to March 30, 2016 the price did nothing.
Went from 1.3 to 1.31, with a high of 1.4 and a low of 1.08.
Winter doldrums. Unless they get another blockbuster contract.
A $2 million order pre-split would send the price higher!
I wonder if the market is trading the stock down to the fair value that Morningstar has it? $2.46. Or maybe its just year end shenanigans.
Very Strange...Virtra is going UP
I thought Virtra was supposed to be going down. NB and Twister were emphatic that an RS and a lousy earnings report along with other reasons would drive the price down.
Doesn't seem to be happening. Do you suppose investors have figured out this is now a very underpriced company, and they want in at these fire sale prices?
I'm guessing the runup we are seeing is because someone knows there is going to be a good earnings report so they are buying before the fact. I've noticed there is always a flurry of activity before earnings are released. Sometimes up, sometimes down. Someone always seems to know what is going to be released ahead of time.
24% compounded annual price appreciation since 2009 is mild success?
There are a LOT of fund managers out there that would kill to get those numbers.
Having owned this stock off and on since 2004....
I notice there was no reverse split during most of the time I owned it, yet not doing a reverse split did not keep the price from falling.
Ergo, maybe a reverse split is what's needed to make sure the price goes up.
Ever thought of it that way?
Modern Round is not just for gun enthusiasts, but for anyone who wants "different" entertainment than the usual. We can be certain that Virtra's simulators offer that.
Plus, its a very upscale environment. Gonna cost between $150 - $300 for a party of four, so its not for the blue collar gun crowd. Great food and great entertainment.
I'm pretty certain there are millions of people who do not own guns who are curious to know what its like to shoot one, but would not be caught dead actually doing so. Modern Round enables them to shoot without actually shooting a gun. The experience, from everything I've read or seen, is very close to the real thing.
I think Modern Round is going to be very successful.
Golf: For the third straight year, the NGF reports the number of golfers in 2014 was near 25 million. This number (24.7 million) matches the figure for 2013, but is down from 2010 (26 million) and 17 percent off the peak in 2005 of 30 million. It also matches the pre-Tiger Woods number of 24.7 million in 1995
Guns: A new study aimed at figuring out who owns gun in the United States and why suggests that about a third of Americans have at least one.
So about 110 million Americans own a gun. That doesn't mean they are all gun crazy, but it does suggest the market for Eat and Shoot is far larger than Eat and Golf. Plus, there is the curiosity factor for people who do not own guns, they may be interested in visiting a restaurant where they can shoot without risk. Especially if they want to learn about them, something Modern Round does.
I think in a culture where gun violence is in the news every day far exceeds a culture where we hear about golf only a few times per year, when the tournaments are played, and even then almost never makes it to the front page.
Like it or not but shooting is far more appealing than golf. And is likely to stay that way for the rest of our lifetimes.
They stayed on the pinks to conserve capital and time. Listing elsewhere costs money and the time to manage the increased SEC requirements. When you are a tiny company with very little cash flow you look for ways to operate on the cheap. Doing so enabled them to focus on their core product and succeeding.
Here is the detail I pay attention to:
I bought back in at an average price of 62 cents in 2009.
Today its trading at 2.85, almost 5 times what I paid for it. About a 24% annual return on my investment. I'm a strict buy and hold investor who could trade if I had the time to focus on it. I don't. I also prefer small stocks because the investment is much more personal. Virtra certainly fits the bill, I can ask management questions and get answers.
I've complained in the past. Those days are over. Since I think there is a high probability that the price will climb to $15 or more over the next few years I think its stupid to sell. Or to complain.
Modern Round generated $144,021 in their first month of operations.
http://www.modernround.com/img/investors/229782_ModernRound_10Q_Q2%202016_AsFiled.PDF
Revenue, net for the three months ended June 30, 2016 was $144,021 compared with $0 for the three months ended June
30, 2015. The increase was due to the opening of our Peoria, Arizona location in June 2016, which generated $132,021 in sales
revenue. The remaining increase was due to $4,000 per month in licensing revenue. Revenue, net for the six months ended June 30,
2016 and 2015 was $156,021 and $0, respectively.
During the six months ended June 30, 2016 and 2015, we recorded expenses of $116,873 and $360,533, respectively, in connection
with our agreement with VirTra, a public company in which certain of our directors and officers have a minority interest. At June 30, 2016, we had the following balances in connection with VirTra: $40,340 in accounts payable; $10,025 in accrued expenses; and $9,915 in accrued royalty expense. (for one month of operations, the first month, and presumably the slowest month)
Virtra gets a 7% royalty off the top of Modern round's sales. Not sure exactly how sales are accounted for, as the numbers reported above don't reflect a straight 7% of revenue, there is a slight difference.
We will find out more when they release their 3rd quarter report the same time that Virtra releases theirs. That should give us a better idea of eventual revenue, although being a brand new company we won't really know until the "newness" has worn off.
MR plans to expand this across the country if they are successful with the first one. By every bit of information I can glean they have been wildly successful.
Time will tell.
They are generating more free cash than they can use, so why not buy back shares? If Virtra is a good investment for shareholder why isn't it a good investment for the company? They can always issue more shares later at much higher prices if they need the funds, although I doubt that will happen. I suspect between sales of support contracts and the Modern Round royalties that Virtra will be swimming in cash going forward.
I think what may be happening is news does not get out all at once. So someone wakes up and finds out a reverse split happened and does the knee jerk response of selling their position. Price falls and wiser heads jump in an buy. We've had 3 days of just such spikes down over the last 5.Price hasn't moved much overall.
We are drifting around the high.
I can remember when we were drifting around the lows. Months on end, doing nothing. Now its set a new high, drift around the new high, then do another new high, etc.
I'll take THAT action any day of the week!
My Scottrade account shows that my net worth increased with the rise in the price from 2.95 to 3.10, but on an individual stock price basis they claim VTSID fell for the day, from 3.50 to 3.10.
I've asked them to explain this logic.
I used to bitch at management myself, but since the stock has moved from 4 cents to 29 cents I no longer have any complaints. How many pink sheet stocks have accomplished what Virtra has done, on top of which they are now making serious moves to get off the pinks?
I think you just like to complain.
My apologies
I asked Larry at Financial Profiles
The preferred shares were already created long ago and were authorized by resolution of the shareholders at the time of the Company's formation.
These preferred shares had never been issued by VirTra in the past. As such, the Board had the authority under Texas Statute to create a series of such authorized preferred and to thereafter set the rights and privileges of the series pertaining thereto. This was all accomplished by Board action.
In any event, they have been cancelled at this point.
From the horse's mouth:
http://www.virtra.com/corporate-faq/#19
Q: Is there currently any preferred stock outstanding?
A: No.
Bill,
R/S is one of the reasons why the price will rise. My cousin (http://socialequity.com/) wants to recommend it to his clients but cannot do so, partly because of price and partly because its on the pinks. He has a LOT of company.
Andy