Monday, July 28, 2014 2:46:07 PM
Video Games Get Serious
By Brian Hicks
Monday, July 28th, 2014
http://www.wealthdaily.com/articles/investing-in-simulation-technology/5269
At this point, I'm assuming most of the people who read these articles belong to a generation that's quite familiar with video games.
I personally remember my first experience with the Atari 2600 as if it were yesterday.
It was the early '80s, and that day's visit to my uncle's house would forever change the way I viewed home entertainment.
Of course, say that to any member of today's youth, and you're likely to get laughed at.
Compared to games like Space Invaders, Galaga, and Pitfall, today's offerings like the latest Grand Theft Auto represent about the same level of advancement that an old Atari had over a yo-yo.
But games for entertainment aren't the only things played on modern computer simulators. In fact, some of the most serious simulators out there owe much of their existence to early pioneering technologies just like the kind I saw for the first time more than three decades ago.
Serious Games Get More Serious
Jet pilots, both military and civilian, have been using flight simulators since at least the early '80s... as have other professionals working in fields where live training is often too costly or too dangerous to rely on 100% of the time.
One particular occupation that is benefiting from the emergence of advanced computer processors right now is the job of the professional marksman.
Firearms training simulators have also been around for decades, but just like those early video games, they've changed significantly. Now, their link to the simulators of days gone is a distant one.
VirTra Systems Inc. (OTC: VTSI) is one particularly interesting company operating in the simulated firearms training space today — and despite the highly advanced level of its products and the high-profile government agencies that use its equipment, VTSI is a surprisingly small firm.
Its flagship model, the V-300, takes weapons training to a new level. Unlike previous single-panel shooting simulators, the V-300 provides a 300-degree wraparound experience, during which a marksman is challenged with threats from both straight ahead and the periphery, where hostile operatives are most likely to strike.
Realism Taken to a New Level
Another major component of firearms handling is the management of recoil — the equal and opposite reaction of the gun in the hand of the shooter that is felt the instant a round is discharged.
VirTra's simulator a marked improvement over the Nintendo-like light guns of the past, which generated no recoil and were thus useless in getting an individual accustomed to the noise and physical forces associated with discharging a real firearm.
VirTra Systems develops, sells, and supports its firearms training systems for law enforcement, military, or civilian use.
The number and type of scenarios it can generate are effectively unlimited — allowing for both indoor and outdoor engagements with hostile operatives ranging from Taliban insurgents to our own homegrown, gun-toting felons.
Aside from the top-of-the-line VirTra 300 LE, the company's products include VirTra 180 Simulator, VirTra 100 Simulator, VirTra Range Simulator, Top SME Content, Simulated Recoil, and Return Fire Device.
VirTra directly markets and sells its products throughout the United States, and customers include law enforcement agencies, military agencies, and commercial businesses.
The company sells simulators worldwide through a direct sales force and international distribution partners.
In May 2012, VTSI announced a sale of its VirTra 300 LE Simulator to the Hudson County Office of Emergency Management.
In February 2013, it announced the sale of a V-300, a V-180, and a V-100 to the Artemis Defense Institute in Lake Forest, California.
A Big Player With Even Bigger Potential
Just last week, VTSI announced that it successfully passed all factory acceptance tests for an international contract exceeding $2 million.
Now, I know what you might be thinking: Why is a $2 million contract such a big deal? This is a big, powerful tech firm, right? $2 million should be a drop in the bucket and hardly noteworthy.
Well, that's the surprising part...
You see, VTSI isn't a big, rich tech firm. With a market capitalization just shy of $8 million, this Arizona-based leader in the electronic firearms training industry is actually a microcap company.
This makes that contract I mentioned worth more than 25% of the company's entire net worth — and therefore a major step forward for the outfit.
For a risk-numbed veteran trader, this company is a true gem.
It's small, it's efficient, and its technology addresses a need that will only grow in the future (at least until human civilization stops making bad guys).
Moreover, the stock trades for just $0.05 as I write this article — down 40% from 52-week highs, putting it firmly into bargain country.
Can You Afford to Risk? (Can You Afford Not To?)
Now, most of you familiar with these tiny nano caps are also familiar with how unstable and potentially short-lived they may be.
VTSI is nothing like that. With an established customer base, a strong reputation in the industry, and a unique and highly functional product line, this is no fly-by-night, futureless penny stock.
I would expect shares of VTSI to move higher before the year is out — with each penny representing a 20% gain if you manage to get into it today.
Having said that, I'd also like to add that this stock is not for everyone. Indeed, I only recommend these tiny companies to those with thick skin and little to no risk aversion.
If that sounds like you, then this could well be one of the more exciting positions you build this year.
To your wealth,
Brian Hicks
Brian is a founding member and President of Angel Publishing and investment director for the income and dividend newsletter The Wealth Advisory. He writes about general investment strategies for Wealth Daily and Energy & Capital. Known as the "original bull on America," Brian is also the author of the 2008 book, Profit from the Peak: The End of Oil and the Greatest Investment Event of the Century. In addition to writing about the economy, investments and politics, Brian is also a frequent guest on CNBC, Bloomberg, Fox and countless radio shows. For more on Brian, take a look at his editor's page.
Recent VTSI News
- VirTra Sets First Quarter 2024 Conference Call for Tuesday, May 14, 2024 at 4:30 p.m. ET • GlobeNewswire Inc. • 04/30/2024 12:00:00 PM
- VirTra to Introduce V-XR Training Solution at IAHSS Exhibition, Signaling Increased Commitment to Healthcare Security Training • GlobeNewswire Inc. • 04/29/2024 12:00:00 PM
- VirTra Awarded $5.9M Prototype Contract from U.S. Army IVAS Prime Contractor Microsoft • GlobeNewswire Inc. • 04/18/2024 12:00:00 PM
- VirTra Reports Fourth Quarter and Full Year 2023 Financial Results • GlobeNewswire Inc. • 04/02/2024 10:00:00 AM
- VirTra Reports Fourth Quarter and Full Year 2023 Financial Results • GlobeNewswire Inc. • 04/01/2024 08:05:00 PM
- VirTra Sets Fourth Quarter and Full Year 2023 Conference Call for Monday, April 1, 2024 at 4:30 p.m. ET • GlobeNewswire Inc. • 03/18/2024 12:00:00 PM
- VirTra to Participate in the 36th Annual ROTH Conference on March 17-19, 2024 • GlobeNewswire Inc. • 03/07/2024 01:00:00 PM
- VirTra CEO John Givens Appointed as Executive Committee Chair for National Center for Simulation • GlobeNewswire Inc. • 02/15/2024 01:00:00 PM
- VirTra Debuts Advanced Training Content and True-Fire™ Recoil Kits at SHOT Show • GlobeNewswire Inc. • 01/18/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/28/2023 09:05:21 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/21/2023 09:05:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/07/2023 09:05:14 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/06/2023 09:17:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/06/2023 09:15:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/04/2023 09:42:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/04/2023 09:40:26 PM
- VirTra Debuts New Integration of VBS4 at I/ITSEC 2023 to Support Military Clients • GlobeNewswire Inc. • 11/29/2023 10:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/29/2023 09:19:05 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/29/2023 09:18:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/27/2023 10:54:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/27/2023 10:52:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/22/2023 09:07:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/22/2023 09:05:31 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 11/21/2023 03:54:26 PM
- VirTra Reports Third Quarter and Nine Month 2023 Financial Results • GlobeNewswire Inc. • 11/14/2023 09:05:00 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM