RE:Bottom (I think)Virtutone is definitely in the penalty box with most investors thats for sure. As it stands today the company is significantly more de-risked than it was 6 months ago. The Q2 report will be interesting, and should start to show us the potential of the company.
It was about this time a year ago when I first heard of VFX in the Cantech letter. A small but promising company projecting revenues of 10 million dollars monthly. I must say I was more than a little bit interested.
Here we are year later and they have delivered on that and exceeded it by far in some cases, but no one really cares. Of course they also talked of accretive acquisitions and 5% gross margins to be fair.
I wonder if I never heard of Virtutone and I read a report on the company written today. How would I feel? What would it say?
A small but nimble company with a market cap of under 9 million with the ability to achieve 45 million in Quarterly revenue, with margins in the 3-4 % range. I'd probaly think it was a typo. Then I would read how they just recieved a LOC for 10 million dollars (exceeding their current market cap ) at very favorable terms that would help ramp up revenue to 60-75 million range a Quarter. It would be hard for me to imagine an oppurtunity this good. Afterall they would be projecting annual earnings that equaled nearly half their market cap. To me that would be impressive. If any on this board knows of another company with a very real chance of earning half their current market cap in net profit please feel free to let me in on it. I will be a buyer.
For now the wind is out of investors sails on this name, but the story is still intact.