New clues about what The X Train will really be.

[Alan Mendelson]

It seems that every time the Las Vegas Railway Express issues a new press release, we get a better idea about what The X Train is really going to be -- if it really does make it onto tracks somewhere in the country... or in Canada.

The latest press release issued today, talks about offering a luxury passenger car service. There is no mention of train service between Southern California and Las Vegas, nor any mention about having actual X Trains.

I have to wonder what the Wall Street investment houses that raised millions of dollars and what the stockholders who pumped millions into the company think about the change of plans? But with a current stock price of about 3-cents per share for XTRN shares, I am guessing they don't think much of it.

Here is the press release:

LAS VEGAS, NV--(Marketwired - Nov 25, 2013) - The Las Vegas Railway Express, Inc. (OTCQB: XTRN), known as the X Train, announced today the selection of Masterpiece Cuisine as the caterer for their luxury passenger train service. The company is engaged in developing luxury train travel service specializing in rail vacations in the US and Canada.

"Choosing Masterpiece Cuisine was a pleasure. We have spent several years in the selection process for our F&B partner," states Penny White, COO, Passenger Services for the X Train. "By combining the excellent service of Masterpiece Cuisine with the Club X Train service, our vision of becoming the modern day Pullman Luxury Car Company is becoming a reality." Speaking for Masterpiece Cuisine, Co-Owner Scott Mahan said, "We want to revolutionize the way people think about train food. When the X Train came to us that was their vision."

The luxury train company expects to begin offering exclusive passenger rail service this December. They will be offering a luxurious experience -- including live action cooking and an experience you would find in many city private clubs.

About Masterpiece Cuisine
Masterpiece Cuisine is a Las Vegas, Nevada based off-premise catering company that has received multiple awards for excellence. As one of Clark County's top caterers, the company chef Tim Welc focuses on fresh quality ingredients, often organic, and fuses multiple styles together to create a unique experience. The cuisine is known for its quality, originality and unmistakable flair. In addition Masterpiece Cuisine operates at several exclusive venues including The Mob Museum, Madame Tussauds, Lake Las Vegas, Legends Ranch and several other locations.

About Las Vegas Railway Express
The X Train is a Las Vegas, Nevada based company that offers exclusive railway train service between premier destinations. Offering day trips and vacation packages, the X Train passengers can expect spacious first class seating, complimentary beverages and fresh catered food options prepared exclusively by Masterpiece Cuisine. In addition, the X Train passengers will enjoy on board concierge service to book hotel rooms, transportation transfers, entertainment, show tickets and other travel incidentals. The X Train is part of the Las Vegas Railway Express, Inc. which is a publicly traded company (OTCQB: XTRN). For more information, please visit the company website at http://www.vegasxtrain.com.

[Alan Mendelson]

Another week... another press release. And this latest press release is giving us more details about the X Train and as I suspected the company's plan now is to attach special "club cars" to other, existing passenger trains around the country (Canada too) and the club cars will offer some sort of high-end service.

My first question is, is there enough demand for high-end service on trains? My second question is, does any other rail line want X Train's club cars? My third question is can they make money doing this? My fourth question is who is going to make money if they can make money?

I think question number four is really the important question here because the newest press release talks about the X Train seeking new financial partnerships -- both public and private -- to finance its new operation. (Actually, it's first operation since the original Vegas to SoCal train never started.)

This financing makes me wonder if existing stockholders will ever benefit or if the new "partners" will benefit exclusively? And if that's the case, why doesn't the company just liquidate (go bankrupt) and start over as a "club car company" with a clean balance sheet and without stockholders who took a bath?

Here is the newest press release, and you will probably have your own questions about what's going on:

LAS VEGAS, NV--(Marketwired - Dec 2, 2013) - The Las Vegas Railway Express, Inc. (OTCQB: XTRND), known as the X Train, a planned luxury train travel service featuring its "Club X" service, announced today that the Company is seeking to create Public Private Partnerships with existing passenger rail services, to provide a high end Club Style service on selected existing routes. The concept, set to deploy this coming year, has the X Train providing its own club style and upscale rail cars which are planned to be coupled to existing passenger trains. The X Train plans to pay for the incremental cost of hauling the additional cars plus a revenue participation in the X Train revenue stream for participating rail agencies. No taxpayer resources are required to commence this service and the X Train bears the capital cost of producing the rail cars. The first such delivery of Club X Train cars is scheduled to start this month as the cars begin arriving December 9th here in Las Vegas. Interested parties can contact Penny White, Chief Operating Officer - Passenger Services at 702-628-9245 or by email at penny@vegasxtrain.com
"We have been working on this concept for years," stated Michael Barron, President and CEO of the X Train. "We have seen the budgetary constraints imposed on municipalities and the DOT's and we believe we can help relieve the burden by providing equipment at our cost and generating a revenue stream to the agencies. We think this is a real step in the right direction to rail passengers and should open ridership up to a whole new segment of customers," Barron stated.
About Las Vegas Railway Express
Las Vegas Railway Express, Inc., the X Train, is a publicly traded company (OTCQB: XTRND) that is currently in the process of designing and implementing a luxury train service from the Los Angeles basin to Las Vegas known as Club X. The service will utilize conventional rail rights of way and passenger rail equipment -- outfitted in a First Class configuration -- to deliver a new, exciting and cost efficient way for rail passengers to travel. The company is hopeful it can deploy its Club X service onto existing railroad operations in the US who are seeking a first class service option for their ridership. For more information, please visit the Company website at http://www.vegasxtrain.com.

[Perdition]

Yeah the other way sounded cool because it seemed like in part it would be subsidized by LV to get people away from the Indian casinos and card clubs and instead make a alternate day trip option when you want to go for something higher up than the Megabus.

This just sounds like they will piggyback off rail lines and be at their mercy when it comes to distribution and revenue cut.

What could have been....

[Alan Mendelson]

And adding to the problem... there is no passenger train now between Southern Cal and Las Vegas, and I doubt the X Train club cars will be added to a freight train.

What had everyone excited... and I am going to suggest that what got the shareholders excited too... was the concept of returning passenger train service between So Cal and Las Vegas. It's pretty clear that will not be happening anytime soon.

Perhaps there will be an X Train Club Car between New York and Atlantic City or between San Diego and Los Angeles... but forget about getting to Vegas by train.

[Alan Mendelson]

Wow... the stock of the X Train closed today at 70 cents. And the symbol has changed from XTRN to XTRND.

Just checked: The "D" added to the symbol of a stock indicates a reverse stock split. One new share for every 20 old shares.

Please see more about this below.

I edited this post to reflect the new information.

[Spock]

I notice their web site hasn't changed and still has only information about the original plan. However you can buy an X Train golf shirt for 70 bucks or a hat for 20.

Trains do have a draw with many people, and journey's such as those on the Orient Express fetch some high prices. But I see a lot of unanswered questions with their current plan. If there is demand for a "club car" experience on some of these routes wouldn't the existing provider already provide one? If their plan is to tie it onto short excursions then they will have to drag it all over the place, which wouldn't seem to be very economical. If their plan is to use it on longer excursions then will there be 1st class sleeping accommodations as well? Or is there plan to keep this going as long as possible because they are making a pretty decent salary with all this planning?

[Alan Mendelson]

If there is demand for a "club car" experience on some of these routes wouldn't the existing provider already provide one?

A friend of mine in the railroad business told me there are several private companies that provide "club cars" or "Pullman cars" on trains. So there are already competitors in this segment of the business.

[Max A Million]

Wow... the stock of the X Train today was at seven-tenths of one cent. And the symbol has changed from XTRN to XTRND.

Just checked: The "D" added to the symbol of a stock indicates a reverse stock split and a reverse stock split is in the works. You get one new share for every 20 old shares.

Yet, the price is now just a fraction of what it was about a week ago.

Now at seven-tenths of one cent, when a week or so ago it was at 3 and a half cents.

Someone is going to have to explain this to me, as I am unfamiliar with penny stocks doing reverse stock splits.

Hi Alan,

What this means is that the company's outstanding shares are going to be reissued to shareholders in smaller quantities while taking into account the ratio being used. For example, let's say that you hold 100 shares of company stock and this reverse split occurs. The 1 for 20 ratio will also go into effect. After the reverse split, you will now own (100/20 = 5) 5 shares.

Using the company's current stock price, this also means that the price on the new shares will also multiply by 20 times its original price (0.7 X 20 = $14).

Looking into the total shares outstanding, the company will now have (178,907,262 / 20 = 8,945,363.1). I think they round up fractional shares so now the company will have a total of 8,945,364 shares outstanding.

Hope this helps! Please ask any other questions if you need more clarification. Have a good night!

[Alan Mendelson]

Max A Million thanks, but I think the price of the stock now at 70-cents already reflects the reverse split.

It was at about 3.5-cents per share a week ago, so 20 X 3.5-cents = 70 cents per share.

I tried to ask this question on their Facebook page, but I think the ability to ask questions on the Facebook page has been removed.

[Max A Million]

You are right, Alan. It looks like the split occurred already. Thanks for the info.

[Alan Mendelson]

I think the X Train folks blocked me from being able to posts comments on their Facebook page.

[Perdition]

Yeah I went looking for your name on any of the comments in the last 3 months and it is just not there. You must have hit them a little too close to home with something. Especially when they have people bashing them left and right.

Also saw you are making your way back to KCAL 9 for your show. Congrats on that. I was actually a pretty frequent viewer of your news segments before and I thought they did you wrong.

[Alan Mendelson]

I worked at KCAL in the news department for 16 years and then I was "let go" with about fifty other staff members (KCAL and KCBS) who were over the age of 50. This was a housecleaning about 7 years ago. I immediately went into the Infomercial business.

I originally had my Best Buys show on KCAL but then switched to KCOP when I get a better offer for air time... and now I have a better deal from KCAL so I am moving again. This is paid programming, of course, so it has no connection with the news or even KCAL management. It was strictly a business transaction with their sales department.

Regarding the X Train: yes, I think I did hit them hard with a reality check.