VirTra Inc (VTSI)

[stockguy1000]

A good question. If I were management I would hold at least that much cash as a hammer against the shorts post reverse split. On the CC management was quite clever, without committing to anything...they mentioned how they could support a 4 dollar price through buybacks. Noone wants them to doa buyback at this stage, there are far better uses of the capital, but they could if shorts start monkeying with the stock. Management obviously doesn't want to buy back shares with 1.5 million outstanding (a stock buyback for a growing company like this is a waste of ROI), but they will if the stock drops below an acceptable point. Again, if this stock fails to increase in price, I estimate that in 2 quarters at least 12-13% of the value of the stock will be in free cash.

Any short doing his due dilligence would see the cash available vs. the outstanding shares and the price of those shares, and if they are smart would stay the hell away.

Shorting this stock could lead to a disaster. If it does get shorted, shorts could easily get squeezed out after another positive quarterly report or an annouced buyback / dividend, leading to a skyrocketing short term price. (And hopefully a nice payday to us.