Replies to post #30132 on 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.

[Schneidku40]

I'd say keep saving for the immediate future. They increased cash by around 500k in 4Q alone. They could do a number of things by the end of this year with the 2 million in cash they would have. They could buy back 20% of the O/S, buy land for a future building (although I think I'd wait until at least next year to do that. It would help increase assets on the balance sheet, though), and get audited. If they started reducing the number of shares by just buying and retiring them, that would increase the share price substantially. Even if it was only 5-10% of the shares, that would at least indicate to investors that they are reducing the O/S rather than increasing it like they have been for the last several years. A simple reversal of trends in that regard would go a long way IMO, especially on the pinks, where dilution is the norm and what drives stock prices down.

They could also spend some on R&D for new products. While the simulators they have are great, they have basically two products- simulator and shooting range. Maybe try something in another realm even, or how about actual 3D simulators? Perhaps develop a product that suits the military more. As Ferris said on the CC, retail to private citizens just doesn't work in this game. Back in 2005-2007 they had several contracts with our nation's Army and the like, and the stock price was much better then. Investors realize that defense spending is huge, which is part of why the Lockhart PR got so much attention. Lockhart deals with the military.