PE expansion typically comes with some kind of real expectation of accelerating future earnings. Are we going to get that with Bob Ferris? I doubt it.
As I've posted in the past, Bob has done better at building a business than in creating shareholder value. He's shown no interest in creating a shareholder-friendly company that attracts investment and gives visibility on why an investment into Virtra is going to earn a better return than in all the other investment options out there. I seem to remember making a post that perhaps Virta should be on par with the ten-year treasury. But actually, it's been a worse investment in that time.
He hasn't been visible as the CEO of an OTC-listed company, why would being on the NASDAQ change the dynamics?
Kudos to him for continuing to improve the balance sheet and the business. This last quarter, they earned 0.0053 per share. Two cents annualized gives them a current PE of around 3. I won't deny the possibility that there could one day be a blockbuster deal that will really move the price, but absent that, a PE of around 4-6 makes sense to me and I can imagine it getting in that range in the near term. I got rid of most of my shares a while back and have held onto a few out of sentimentality. If the PE gets into that range in the next quarter or so, with no other news, I'll close out my position and move on.
I know I haven't posted in quite some time, so apologies for returning with negative comments. Ray et al, hope I'm wrong and it works out very well for you all.
-Pat
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