VirTra Inc (VTSI)

[rut2k9]

I rarely post on these message boards. I consider them a waste of time and a fountain of ill-informed opinions and misinformation. I look when I'm bored, and I'm rarely bored. I also no longer own any shares. I had a small position, and sold it when they announce the latest reverse split. I'll explain why.

Why does the company refuse to pay over $4 for shares via their buyback?

Because they can't.
Legally.

The company may not buy on the opening trade on the NASDAQ National Market or during the last half hour of scheduled trading.

The company's purchase or bid price may not exceed the highest current independent bid quote or last independent sale price, whichever is higher.

The company must stay within trading volume restrictions unless it is doing a block trade.

Rules for share repurchases

Because there are now so few shares outstanding, and such paltry volume, the buyback is nearly worthless. If VTSI hired an outstanding bank with a great trader, they might provide a modicum of support for this stock, but in reality, they will soak up maybe 500 shares per day, and the price they pay MUST be within certain market parameters. They cannot "bid up" the price. This is unbelievably easy for FINRA to spot if they do.

The lack of shares/lack of volume has killed this stock, and it's why I sold. They are no longer a relevant institutional story, as even a small fund couldn't build a meaningful position in any reasonable period of time. Funds with dozens of opportunities don't waste months building a $1M position, and that's what it would take. Moreover, if/when they need to sell (because of a fund redemption, or a re-calibrating of sector weighting, or the death of a shareholder, or they find a better opportunity, or any other reason) they couldn't possibly "get out" without destroying the stock. Even then, if had a week to liquidate a million dollar position in a stock $32k a day, you couldn't.

So VTSI is now an orphaned retail story, only they don't have consistent earnings nor steady news flow, so it's not even that.

And that's why I sold.

Well, I'm finally going into my doctor's appointment, so no longer bored. Good luck to all. You'll need it here.