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Robotech

04/13/05 2:51 PM

#13811 RE: Paul P #13808

There it is Paul! I knew you had a point, Bravo Zulu!, and one more time I see a perspective I didnt before.
I don't agree with this particular one, but I see it now.

The diversification really is being used for the same customers. The same customer (Army for instance) can use both products in different areas.
The recruiting command buyer can identify Virtra as a reliable supplier to the training command buyer who looks to see if Virtra has any background with government sales.

I laughed pretty hard when I read your ascertation of the Red Baron press release. Its a realistic look at how competitors will see it. Almost refreshing to know ahead of time what can be read into a release like that when they look from another angle.

Virtra is so small at this point, the return business of previous customers year after year for ANY product is worth its weight in gold, to investors, to buyers, and to anyone who wants to know if Virtra is for real and not just an entity trying to sell stock.

I say Virtra is in the "virtual reality" business and anything sold under that heading is not a diversified product.

good one though -Rob-


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Virtual_Wealth

04/13/05 3:16 PM

#13812 RE: Paul P #13808

Paul, re diversification:

You know, I try all time to ignore Internet trolls pretending to try to teach us lowly something, and it never seems to work on message boards. I took a crack at it myself.



[discussion is taking place about a pizza press release]

Man: "Maybe they did it show diversification."

Paul: "And to whom is diversification of interest?"

Man: "To VirtraSystems and its shareholders."

Paul: "What about customers?"

Man: "They generally prefer to do business with a company who is able to provide a product in a timely manner, that addresses their needs."

Paul: "I see. So a company who issues a press release in order to show diversification is trying to make an impression on whom?"

Man: "Potential customers in that particular area of interest and investors."

Paul: "I see. And you say that customers prefer a different message, one of specialization?"

Man: "No. I say they prefer a message of a company that is willing to take innovative risks to provide its customers with the most advanced product available. "

Paul: "So what is the cost of trying to impress investors with diversification?"

Man: "There is no cost, there is only benefit in that investors see the commitment the management has to the success of the company. That commitment provides strong support to the stock price which in turn provides strong support from financial institutions that are in a position to advance the long term objective of the company, profitability."

Paul: "I see. And when would the benefit be greater than the cost?"

Man: "Upon announcement of sales from each division, advertising and training."

Paul: "And when would this be the case?"

Man: "According to the chicken entrails and Magic 8 Ball VERY SOON."

Paul: "I see."