To OTC Journal Members:
 

Comments in the BLOG

There are no new BLOG postings so far this week. NWKI rebounded off oversold levels on the news of their acquisition yesterday. A slight pullback could be in the works prior to what I hope will be the next level in the $1.15 to $1.25 range.

To use the BLOG, simply go to the home page at www.otcjournal.com - the BLOG will scroll down automatically on the right side of your screen. The most current journal entries appear in the middle of your screen. Check back frequently for updates particularly when stocks are moving to overbought or oversold levels or in volatile markets. Your questions and postings do not automatically appear, so don't bother posting the same question multiple times. I personally go through to moderate and respond to every question.

Two upcoming editions: I'm working on an update edition on BrandPartners (OTC BB: BPTR) and the previously announced new idea in the biotech arena should be published this weekend.
 

VirTra Systems (OTC BB: VTSI): Military Sale Keeps Party Going

A quote from Mick Jagger of the Rolling Stones is appropriate here: "You can't always get what you want, but if you try sometime, you get what you need."

VTSI Chairman Kelly Jones is not getting what he wants. He wants the order flow promised from purchasing agents of a major branch of the US Military. It hasn't materialized, but we're all hopeful the '06 DOD budget, which becomes available to spend next week, leads to the major orders.

What he needs is smaller orders to keep the party going, and the company got one today. Casting back to the September 14th edition entitled "Homeland Security Stocks: A Beleaguered Group", you will recall I suggested giving up on Aegis Assessments (OTC BB: AGSI), a company that has a great product but can't get it sold, and hanging in there on VTSI.

Today's announcement further bolsters my belief that VTSI could have a comeback when the orders start flowing. These smaller orders keep the company alive and fighting. It is just a question of time and money for the military. Everything being spent these days is going into Iraq- to the tune of about $1 billion per day according to some estimates.

Pictured here is the IVR 300 hi definition judgemental-use-of-force simulator. Trainees are surrounded 270 degrees by hostile combatants, and training simulations are provided in hi def video. No one has anything like it. Nothing on the market is nearly as advanced. Military officers are clamoring to get them in training facilities, but the DOD is simply out of money.

VTSI was awarded a contract to purchase on simulator for the Army Research Lab. This Lab is responsible for vital research studying a soldiers responses under high stress combat situations. 

This purchase brings VTSI to about $400,000 in order flow over the past 30 days. This number is not remotely close to what I hope for the company, but gives VTSI enough order flow to keep the doors open while waiting for bigger and better developments.

In the interim, as you can see from the weekly chart we're showing, the stock is trying to grind down to new all time low levels. It's probably a good high risk speculation down here as it won't take much to get the stock rolling up off these oversold levels. A few orders from the right branches of the military out of the '06 budget, and off we go back into the $.25 to $.30 range. In the meantime, as long as the smaller orders keep flowing, the company lives to fight another day and the risk of holding the stock is minimized.

Here is the complete press release for your review:
 

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