Replies to post #45277 on VirTra Inc (VTSI)

[billpr]

I would agree completely with your post if we were not talking about VirTra.This managment is not that slick for openers, but more important, they have proved time and time again, that they don't give a hoot about the PPS or the Shareholders.

[fishhunter]

Most companies and CEOs are stupid when it comes to stock buyback and retirement of shares. It is because most CEOs are short timers and the benefits of share buybacks usually takes a little longer to be obvious and understood.

But this is where we (VirTra) do have an advantage with an entrenched long term semi-competent CEO.

If the CEO was smart, disciplined, and understood the power of EPS to drive the value of his shares he would relentlessly be buying back and retiring VTSI shares.

If it were me, here is how I would do it (UVE and STX did this):

1. Reach out to big shareholders and offer to buy their shares at a mutually beneficial price in a private transaction. Right now, that price would be $4.50 to $5.00 and I would reach out to everyone with more than 80,000 shares. Most would not take it, but some would.


2. Whenever a few of these transactions happen, issue a PR (like UVE did) and explain it and explain those shares have been retired.


3. Every quarter have the company make open market buys of stock to the tune of $400,000 per quarter. And if company cash flow improves, up this as appropriate. BUT DO IT EVERY QUARTER.


4. Continue with #1.


5. Sit back and watch what happens to EPS and stock price over the next 2 or 3 years as company grows and share count falls. It is a powerful combination.


Easy to do, just takes a smart leader. I would definitely prefer buyback and retirement of shares verses a dividend but would support either.