VirTra Inc (VTSI)

[value1008]

Following up on my thinking:

According to Yahoo Finance, VTSI has a net profit margin and operating margin (both are virtually the same) at 7.8%--but actually looking at their year-end 2013 results (posted at VTSI's website and also at Yahoo), their net profit margin was actually 16.1% on net income of $1.581M divided by $9.82M in revenues, with $3.36M cost of revenues and $4.86M in SG&A, no taxes and no interest payments because no debt.

THAT PROFIT MARGIN SHOULD GO WAY UP ON ECONOMIES OF SCALE if they do, say, $24M in revenues and cost of revenue is only, say, $6M and SG&A is only around $5.5M and, they still have some NOLs and only pay $2M in tax (instead of fully taxed $4.4M in taxes at 35%).

In that case, their net income could out around $10.5M, which on 158M shares outstanding would mean 0.066 in EPS, good for a stockprice of $0.66 - $0.79 at a trailing P/E of just 10-12.