At this point, I’m assuming most of the people who read these articles belong to a generation that’s quite familiar with video games.
I personally remember my first experience with the Atari 2600 as if it were yesterday.
It was the early ’80s, and that day’s visit to my uncle’s house would forever change the way I viewed home entertainment.
Of course, say that to any member of today’s youth, and you’re likely to get laughed at.
Compared to games like Space Invaders, Galaga, and Pitfall, today’s offerings like the latest Grand Theft Auto represent about the same level of advancement that an old Atari had over a yo-yo.
But games for entertainment aren’t the only things played on modern computer simulators. In fact, some of the most serious simulators out there owe much of their existence to early pioneering technologies just like the kind I saw for the first time more than three decades ago.
Serious Games Get More Serious
Jet pilots, both military and civilian, have been using flight simulators since at least the early ’80s… as have other professionals working in fields where live training is often too costly or too dangerous to rely on 100% of the time.
One particular occupation that is benefiting from the emergence of advanced computer processors right now is the job of the professional marksman.
Firearms training simulators have also been around for decades, but just like those early video games, they’ve changed significantly. Now, their link to the simulators of days gone is a distant one.
VirTra Systems Inc. (OTC: VTSI) is one particularly interesting company operating in the simulated firearms training space today — and despite the highly advanced level of its products and the high-profile government agencies that use its equipment, VTSI is a surprisingly small firm.
Its flagship model, the V-300, takes weapons training to a new level. Unlike previous single-panel shooting simulators, the V-300 provides a 300-degree wraparound experience, during which a marksman is challenged with threats from both straight ahead and the periphery, where hostile operatives are most likely to strike.
Realism Taken to a New Level
Another major component of firearms handling is the management of recoil — the equal and opposite reaction of the gun in the hand of the shooter that is felt the instant a round is discharged.
VirTra’s simulator a marked improvement over the Nintendo-like light guns of the past, which generated no recoil and were thus useless in getting an individual accustomed to the noise and physical forces associated with discharging a real firearm.
VirTra Systems develops, sells, and supports its firearms training systems for law enforcement, military, or civilian use.
The number and type of scenarios it can generate are effectively unlimited — allowing for both indoor and outdoor engagements with hostile operatives ranging from Taliban insurgents to our own homegrown, gun-toting felons.
Aside from the top-of-the-line VirTra 300 LE, the company’s products include VirTra 180 Simulator, VirTra 100 Simulator, VirTra Range Simulator, Top SME Content, Simulated Recoil, and Return Fire Device.
VirTra directly markets and sells its products throughout the United States, and customers include law enforcement agencies, military agencies, and commercial businesses.
The company sells simulators worldwide through a direct sales force and international distribution partners.
In May 2012, VTSI announced a sale of its VirTra 300 LE Simulator to the Hudson County Office of Emergency Management.
In February 2013, it announced the sale of a V-300, a V-180, and a V-100 to the Artemis Defense Institute in Lake Forest, California.
A Big Player With Even Bigger Potential
Just last week, VTSI announced that it successfully passed all factory acceptance tests for an international contract exceeding $2 million.
Now, I know what you might be thinking: Why is a $2 million contract such a big deal? This is a big, powerful tech firm, right? $2 million should be a drop in the bucket and hardly noteworthy.
Well, that’s the surprising part…
You see, VTSI isn’t a big, rich tech firm. With a market capitalization just shy of $8 million, this Arizona-based leader in the electronic firearms training industry is actually a microcap company.
This makes that contract I mentioned worth more than 25% of the company’s entire net worth — and therefore a major step forward for the outfit.
For a risk-numbed veteran trader, this company is a true gem.
It’s small, it’s efficient, and its technology addresses a need that will only grow in the future (at least until human civilization stops making bad guys).
Moreover, the stock trades for just $0.05 as I write this article — down 40% from 52-week highs, putting it firmly into bargain country.
Can You Afford to Risk? (Can You Afford Not To?)
Now, most of you familiar with these tiny nano caps are also familiar with how unstable and potentially short-lived they may be.
VTSI is nothing like that. With an established customer base, a strong reputation in the industry, and a unique and highly functional product line, this is no fly-by-night, futureless penny stock.
I would expect shares of VTSI to move higher before the year is out — with each penny representing a 20% gain if you manage to get into it today.
Having said that, I’d also like to add that this stock is not for everyone. Indeed, I only recommend these tiny companies to those with thick skin and little to no risk aversion.
If that sounds like you, then this could well be one of the more exciting positions you build this year.
To your wealth,
Brian Hicks
Check us out on YouTube!Brian is a founding member and President of Angel Publishing. He writes about general investment strategies for Wealth Daily and Energy & Capital. For more on Brian, take a look at his editor’s page.
