An AMAZING update from Kip Herriage and his VRA letter. Kip has a great call with Martin Cronin today. Read carefully, we are that close:
Good Thursday morning/afternoon.
Had maybe my best call ever with MC a few minutes ago. If you're new to the VRA or the Pat 1 (PTOTF) story, make sure and read our VRA Special Report on the company.
Martin is in Greece with Tom Ridge (Pat 1 board member and former US Head of Homeland Security) for a "major strategic opportunity". They were invited to meet with 223 top business leaders in Greece (and from around Europe). Greece is looking to invest heavily in security build outs, both law enforcement (LE) and military.
This sounds big...
MC added " Throughout North America, we have our teams presenting everywhere. Additional contracts of size nearing. Our sales team and supply chain are locking down major contracts now."
When I asked about the recent stock price action Martin said, "The move in the stock is completely divorced from reality and the stock price will soon reflect that. Investors should be very confident in the future of our company".
I addressed the rumors that Pat 1 is having "tech/FCC issues" and that these issues have had an impact on product rollout/sales. Martin said these rumors could not be further from the truth and that they are coming from short-sellers and competition.
I don't believe this has been shared publicly, but Martin said that recently, a “whistleblower” (air quotes) actually called the FCC to tell them that Pat 1 was illegally using communication bands for their CMR tech (Cognitive Microwave radar). Martin said this is a red herring and that these accusations are absolutely false. After meeting with Pat 1 reps the FCC quickly realized this was a false tip and decided not to pursue the matter further.
I know from personal experience with start-ups...and I've seen this first hand with some of my emails and Twitter contacts...that their competition and Canadian short sellers (real scummy types) are actively trying to harm the company. As one of the first to issue a Buy Rec on Pat 1, and as a long term supporter of the company, I have a number of "concerned investors" that keep sending me "research" on Pat 1, pretending to be supporters. Instead, they are trying to poison the well. I've been around a while...seen this game many times. Just be aware of this if you're on message boards or similar.
Personal insight on Martin: I've said this before and I'll say it again...this is a good man. He has compassion and empathy for others, including those that contact the company to say they are losing money in their investment in Pat 1. Folks, most CEO's would simply tell these investors to "sell their shares"...or "find another stock to buy"...or in most cases, not respond to them at all. After all, its not the companies job, nor his, to pacify investors. But MC takes the time to get back to people. He listens and cares.
His quote: "Kip, our job is to be the best at everything we do. We are the preeminent weapons detection/security company on the planet. Soon, everyone will realize this as fact. We're building this company the right way...that's our commitment...to everyone associated with us."
I would invest in any company that MC was running. I believe he's "that guy".
Martin also made clear...twice...that their recent acquisition of XTRACT Technologies is bearing serious fruit. "The EXTRACT team is key to many of our current, major initiatives. The AI/algos work beautifully with our tech. You'll soon see the contracts and revenue from this acquisition."
Martin also said something that caught my attention when I asked him about short-term catalysts for the company. He more than hinted at this in our last call. Said that the upcoming (end of October) IACP (International Association of Chiefs of Police) Conference may have a significant announcement which would immediately change the view/exposure of Pat 1 (Tyler and I are slated to be in attendance).
"Mobile...a real advantage with LE" (big hint here I believe).
Short term catalysts include "key client announcements. Flagship clients". We know from our last call that when MC says "flagship clients" he's referring to Fortune 100 co's, globally. The "biggest of the big".
"We are not a "single play" company. Soon, people will know what that really means. Just know that our Cisco and Johnson Controls partnerships will play a significant role in whats coming...".
Folks, we're talking about $30-50 billion companies here. He stressed their names on our call. Most interesting...possibly new product development that includes both co's? Sounds like we'll know soon enough.
Martin said again, "We are the preeminent weapons detection systems company on the planet and that will be crystal clear to you and others in the near future. We are doing so many things with our partners, people will be shocked."
There you have it. It's my continued view that Pat 1 will be a monster growth stock for us. 10 bagger +. Own Pat 1 aggressively.
Until next time, thanks again for reading...
Kip
