Las Vegas Railway Express XTRN responds to questions about the stock price drop.

Las Vegas Railway Express (Nasdaq symbol XTRN) routinely posts on its Facebook page and the other day responded to questions and complaints about the drop in its stock price. The stock recently set a new all-time low of 4-cents a share.

The company responded this way to the selling and the drop in price:

You never really know why people buy or sell stock, but, as JP Morgan once said "Remember that for each person who sells because he thinks the stock is a bad investment, there is a buyer equally convinced it is a good deal." Projects like this take a long time and the company is not always in control of the issues which affect the timetable. We are no exception to that, but we do our best everyday to move the ball forward. Sometimes that's not in align with what investors have as their own timetable. Be that as it may, we are sorry to see those who sold go and happy to welcome those new shareholders who have taken their place.

I think the key phrase is this: "...the company is not always in control of the issues which affect the timetable."

Actually, there is no timetable. We have heard over the last several years projected start dates but there still isn't a specific start date.

There isn't even a time table for buying or renovating train cars and the biggest disappointment seems to be the change from a downtown Las Vegas train station to a North Vegas station and there still hasn't been a formal announcement of an actual deal for a North Vegas station.

The criticisms are getting worse and harsher. One person posted on Facebook:

18 months ago or so they had got a deal on the old train station, Hired a FEMALE Owned Construction company and so on now what happed to all that ....... Modern day scams this SUCKS !!!!

You have to remember that over the past two years this company has been raising money in the private sector with private placements of stock and now the stock price is only a small fraction of what it was. At it's high, I think the XTRN stock sold at 45-cents a share... so it's down about 90% from its peak.

XTRN shareholder meeting is coming up on September 23 according to a post on the Facebook page. Meanwhile the "fans" are getting restless about the lack of "news" and the lack of "progress" and the falling stock price. XTRN stock is now trading at 4-cents a share, which is its all time low.

Now on the company's official website is this page regarding its proposed train schedule. Look: http://www.vegasxtrain.com/proposed-schedule.html

It appears that they have four trips a week planned... and for that they want to build a train station in North Las Vegas with NINE PLATFORMS ?? Starting out at the Amtak Station in downtown isn't sufficient?

I just spotted this line in a post on the XTRN's Facebook page, and this is significant:

We have begun the renovation on the 16 Railcars we own and a whole lot of other things necessary to make this all happen.

This is the first time I have ever seen any comment about the rail cars actually being owned or in the process of renovation.

I thought this comment by Don Telford on the Las Vegas Railway Express Facebook page was so compelling that I had to copy it and paste it here:

The stock was trading around 18 cents a year ago, then agreement with UPRR was announced. Price has dropped ever since, now at 4 cents. The market price reflects the improbability that the concept can ever be viable due to the enormous capital required, estimated at $100 million by Mr. Barron. UPRR wants $27.2 million for track improvements before the first train even runs. And another $29.4 million iwithin 2 years. Meanwhile, LVRE burned through $5 million + in salaries, fees, etc. the last 12 months. And can't or won't show prospective investors even that it actually has some railcars.

I wonder if I can short sell this company.

This is going to be a huge failure.

Cool. We expect to have conformation within the next couple of weeks. We would like to see this add to Las Vegas local employment.

Quote:

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Originally Posted by JustinWill

Cool. We expect to have conformation within the next couple of weeks. We would like to see this add to Las Vegas local employment.

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What do you expect in the next couple of weeks??