To OTC Journal Members:
 

Uncle Sam Wants VirTra (OTC BB: VTSI)

Early Tuesday morning VirTra Systems put out a press release which was important and meaningful. The stock responded by trading about five times normal volume and starting a rebound phase. This is the first opportunity I have had to cover it. I know many of you are long standing shareholders of VTSI. This is welcome news and bodes well for further upside in the stock once the market gets out of its current funk.

VirTra Systems has been awarded GSA (Government Services Agency) solicitation status. On the surface, this sounds like no big deal. This is very welcome news in terms of new product orders from any entity the US Government, including any defense or homeland security related agencies.

Apparently, Uncle Sam wants more VirTra products at its agencies. To date, there have been orders from the Air Force, Army, and an undisclosed Department of Defense entity (which is the largest order of them all). Product sales have run the gamut from judgemental-use-of-force training simulators to flight simulators used for Air Force marketing and recruiting.

In order to achieve previous sales, US Government agencies were previously compelled to complete a 270 day process which required the collection of bids from other vendors.

Now that VirTra's simulators have been upgraded to GSA procurement status, any agency of the Federal Government can simply order any of VirTra's products in a two week process with no competitive bids. It's like ordering off the menu at your favorite restaurant. This is a major coup for the sales department of the company. All their products- the judgemental-use-of-force training simulators and the virtual reality marketing products have been added to the GSA list.

With the Homeland Security Department getting ready to spend it's $170 billion fiscal 2005 budget, and the various military agencies retooling their training programs with an eye towards close urban fighting and terrorism prevention, VirTra is now in the sweet spot of the sales cycle. Look for a great fall for this company as the US Government agency begin to put their fiscal 2005 budgets to work.

Lately I've been getting some feedback on the recent lackluster performance of some of the OTC Journal's ideas. The vast majority of members realize we are going through a consolidation period with anemic volumes. Some mistakenly believe it is easy to make money in the market, and every idea we publish should be generating profits immediately. Doubters should look a little longer term.

Looked at over the longer term, VTSI has been a huge win for OTC Journal members. I first introduced VirTra Systems to the members on July 15, 2003 at $.10 per share. You had a whole month to accumulate the stock in the $.10 range.

Today, one year and two weeks later, VTSI is trading at about $.36, 260% above the suggested entry point, and only 24% below the all time high set last Fall. Moreover, the current chart you are looking at suggests to me this stock wants to go higher. The uptrend which began last Fall has never cracked significantly to the downside. The stock has simply consolidated for several months at a time.

VTSI- I still believe we will eventually see $1 on this stock. The GSA status should accelerate sales, which will hopefully improve share price.

Here is the complete text of Tuesday's press release for your review:
 

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