Shares in the penny stock of VirTra Systems (Pinksheets: VTSI) should have seen a jump in price and volme after their sale announcement on Friday. Although the day end positive for the picksheets stock, VTSI traded just 22.6K shares, up 9.09%, to close at .06. Prior to the end of the trading session, VirTra, a leading provider of firearms training simulation systems to military, law enforcement agencies and other organizations, announced a sale of its VirTra 300 LE Simulator.
Smith & Wesson Holding Corp. (Nasdaq: SWHC) was $3.82 on December 8th of last year when we sent out our alert on the stock. SWHC closed at $8.15 in the last trading session, up 113% since our alert. The trickle down affect in gun sales will eventually fall into the “top-line” of companies like VirTra especially since the sale of the simulation system was not the first for VTSI. This particular sale, the 300 LE Simulator, went to the Hudson County Office of Emergency Management.
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VTSI Stock Chart:
Market Cap: 9.50M
Price/Sales (ttm): 0.96
Price/Book (mrq): 0.87
Most Recent Quarter
(mrq): Sep 30, 2011
Profit Margin (ttm): 15.28%
Operating Margin (ttm): 19.17%
Shares Outstanding: 158.33M
Last month, VirTra Systems announced the hiring of Jason Mulcahy as the Company’s liaison to the government and military community. Prior to joining VTSI, Mr. Mulcahy was Director of Sales for Reality Engineering, a visual interactivity technology company where he designed and implemented a sales model that led the small start-up from a distribution sales model to a direct sales force with 20 regional territories.
The trickle down affect of firearms registration growth is already falling into the hands of VirTra. Couple that with the ease of training personnel compared to on-site simulations and the costs involved and you can see the top and bottom line growth estimations for VTSI begin multiplying. Law abiding citizens are registering for firearms training courses more and more frequently and simulation devices like the 300 LE Simulator will see demand grow.
VirTra Systems is a global leading provider of the world’s most realistic and effective small arms simulators. VirTra is the higher standard in firearms training simulators, offering a variety of simulator platforms, powerful gas-powered recoil kits and the patented Threat-Fire™ simulated hostile return fire system. VirTra’s products provide the very best training available for personnel that are entrusted with lethal force and critical missions.
For more information on VirTra, visit their website: www.virtra.com
Note: VTSI stock is not registered under the Securities Exchange Act of 1934 and VirTra does not currently file periodic or other reports with the Securities and Exchange Commission.
Bottom Line: VTSI is one of those unfortunate penny stocks that simply has too many shares in the float to be able to offer new shareholders a chance for an increase in share price. VirTra is a good company with strong margins and a niche market. If they could just become regular filers with the SEC, get off the pinksheets and reorganize their share structure, VTSI could be a $1 stock.