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Re: ztect post# 30622

Friday, 04/08/2011 2:15:03 PM

Friday, April 08, 2011 2:15:03 PM

Post# of 53792
ztect,
IMO, your thesis is flawed with your emphasis on "speculation"...."no speculative traders who make this pink market will be buying a low volume stock, that just executed a r/s. ..those type of speculators don't care what the reason for the r/s is or was. ."

I would argue the majority of the speculators have come and gone. Virtra was speculative when it was trading for a penny with minimal to no earnings, and hundreds of thousands of dollars of debt.

With the debt elimination, increasing revs and earnings, and strong partnerships, this stock is no longer a speculative buy. It's investment grade with the stigma of "pink". That stigma will fix itself in time. There are a handful of quality companies on the pinks that trade on their fundamentals and Virtra as joined that small minority. As you suggest, the vast majority of the pinks are highly speculative with deteriorating or negative earnings…. not the case for Virtra.

Quite frankly, I hope this depressed price in conjunction with the RS proxy, shakes out the rest of the speculators. If the RS passes, there may be new speculators that enter Virtra with a short bet, but I wouldn’t make that bet knowing what I do about the fundamentals. It sounds like you intend to short the stock when you can. You should get that opportunity if the RS is approved, but I will be betting against you smile GLTY.

PS: The PPS doesn't matter to speculators, at least not to speculators that know what they are doing. I've placed speculative bets on many stocks over the years, and there have been just as many of them selling for dollars as there were pennies. It's all about the percent return, not the PPS.
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