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I'm In the Army Now- With VirTra Systems (OTC BB: VTSI) Help

VirTra Systems, our big winner over the last two months, delivered another blockbuster news release just after the market closed on Friday. The company's momentum continues as they announced another contract in the massive military market. In this case it's a new contract with the Army. However, it's not for their new virtual reality judgmental use-of-force training simulator. This time, the Army has come up with a different way to use VirTra's technology.

According to the press release, VirTra Systems has been retained to develop and build a custom virtual reality experience for the United States Army recruiting command in Fort Knox, Kentucky. Featuring 360-degree head-tracking, stereo audio, time-triggered smells, wind, and vibration, the Army project's virtual reality experience will place the viewer in an Army helicopter performing a full-action simulated mission. The purchase order calls for delivery before the end of the year.

The Army will use the helicopter virtual reality experience as a recruiting tool. Individuals thinking of enlisting will be able to experience a full simulation of a mission in an Army helicopter. When you consider violence and terrorism around the world and our commitment in Iraq, it's not surprising the Army needs the next generation recruiting tool.

VirTra's stock has lifted off more like a fighter jet than a helicopter since mid September. It started with a new contract for a simulated helicopter ride in the Southwest. This was followed up by the first order for a judgmental use-of-force simulator from a foreign government, with an indication of a follow up order for 10 more. The company also announced their revolutionary new training simulator will be featured on the cover of the next issue of law enforcement trade journal Police Marksman.

Apparently, the word momentum is spelled "VTSI" these days. Not only does the stock have momentum, but the company does too. In fact, discussions with management earlier this week lead me to believe the recent new business wins are just the tip of the iceberg, and investors are clearly placing their bets this will be the case.

There are potential major new contracts wins on the horizon.  If (a big if) the company delivers, I believe this stock will find the $1 mark over the next three to six months. 

Common sense would suggest it might be better to wait for the stock to cool off a bit before establishing your first position or adding to the one you have now. Nevertheless, Friday's news could send this fighter jet to higher altitudes next week.

If you like penny stocks, you have to own this one. Since the chart is extended, you should be prepared to invest long term if you jump in now. Nevertheless, Friday's news makes higher levels in the short term seem imminent. If you already own the stock, adding to your position will give you more leverage, and your average cost should still be below the market.

If you haven't done so already, go to the company's web site and sign up for their mailing list. Chairman Kelly Jones sends a personal letter to everyone on the list with each news release. He provides his insight into corporate developments, and it's invaluable to shareholders. Click here to go to the sign up page, or visit www.virtrasystems.com.

Click Here to read the entire text of the press release.
 

Irvine Sensors (NASDAQ: IRSN) Delivers First BGA Stacked Memory Order

This past Wednesday Irvine Sensors announced its first order for the new BGA stacked memory product. When the company announced this new product line was available back in August, the stock surged over the $2 mark briefly. Since then, shares of Irvine Sensors have been slowly grinding down, but started to turn back up with this announcement.

As far as Irvine Sensors is concerned, I believe the market has it right. The stock has not done well over the past nine months, but neither has the company.

When I first began reporting on Irvine Sensors last December, I was very excited about the company's prospects for the coming year. After all, in the previous three fiscal years (end of Sept year end), the company had achieved about $10 million in annual sales. In fiscal 2002, we learned the company achieved $15 million in annual sales, a 50% jump. I thought the company had momentum and it would continue.

Over the past 20 years Irvine Sensors has invested $200 million in technology, all focused on making the company the king of small and powerful when it comes to computing power. Their chip and memory stacking technology is finding its way into many new military and homeland security technologies where massive computing power combined with low power requirement is the order of the day.

The announcement of $13 million in contract wins with the Department of Defense, up from $9 million the previous year, confirmed my belief growth was in the cross hairs.

However, it seems the Department of Defense delays due to the war with Iraq, and the delays in launching their ambitious new BGA (ball grid array) memory stacking products have taken growth for fiscal 2003 out of the picture. In fact, when the final numbers come out around Christmas, I believe the company will probably fall a little short of the fiscal 2002 results.

However, there are some early indications growth will return in fiscal 2004. On Wednesday, the company announced its first contract win for the new BGA stacked memory product. If this new product line takes off, my original insight could prove out in the long run.

In addition, I am informed there is a possibility the company will receive another significant increase in Department of Defense contracts this fiscal year. 

Therefore, I am cautiously optimistic about Irvine Sensors. I'm ready to believe, but I'm from Missouri on this one, the "show me" state. Neither myself or the market is prepared to give this company the benefit of the doubt when it comes to believing in their future growth. The company has to prove it by delivering the goods.

The stock has traded poorly because the company has not delivered. Since first covering the company last December the stock has traded in a range from $1 to $2.40. I launched at $1.70. It closed at $1.40 on Friday, a net loss of 21% over that time frame and a big disappointment. If you had been a nimble trader you could have made money several times.

We're in a new fiscal year and momentum could return. They got their first BGA order, and this could turn into a multi million dollar product line. The Department of Defense will start awarding new contracts soon. I would hold this one with a bias towards buying it as more evidence unfolds that fiscal 2004 is the year I was hoping we would have in fiscal 2003.

If you like to invest in stocks when they are cheap and no one is watching, Irvine Sensors is a buy right now. Click Here to read the complete text of the news release for the first BGA purchase order.

Click Here to view our compensation on every company we have ever covered, or visit the following web address:  http://www.otcjournal.com/disclaimer.html for our full profiles and http://www.otcjournal.com/trading-alerts/disclaimer.html for Trading Alerts. MarketByte LLC has been paid a fee of $25,000 in cash and one million newly issued restricted shares by Virtra Systems for coverage of the company. MarketByte LLC has been paid a fee of $25,000 by Irvine Sensors for coverage through December 31, 2003. As part of the agreement, one of the prinicipals of MarketByte LLC has been awarded 75,000 options, with an exercise price of $1.35.

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