--------------------------------
Playing Mogul
By JONATHAN DEE

Published: December 21, 2003

Globally, the industry earned $28 billion in 2002, and in the United States, it's growing at around 20 percent a year. According to Fortune magazine, Americans will spend more time playing video games this year -- about 75 hours on average -- than watching rented videos and DVD's. A nationwide survey found that the percentage of last year's college students who had ever played video games was 100. Two games from the industry leader Electronic Arts, Madden NFL Football and FIFA Soccer, have each earned in excess of a billion dollars. (This year's Madden edition made more than $200 million alone.) For new and established musicians alike, games are the new radio; landing a spot on a video-game soundtrack is arguably more prestigious than landing a similar spot in a movie, a function not just of sales figures but also of the fact that the average Madden NFL 2004 buyer, for instance, will spend 100 hours in front of the game. Each statistic is more mind-boggling than the last, and together they certainly pose a challenge to conventional wisdom about which of these media is the tail and which is the dog.

Here is another nice PGHI chart with notes:
http://www.investorshub.com/boards/read_msg.asp?message_id=1981684

PSU

quote:

---

Originally posted by COOLORANGEFREEZE:
Hey, Cabbage22! That was the best post on analysis that I have read. It was just like going to school. Thanks for that very easy to understand piece of work. I will be using that info in the future.

And thanks to everyone else for their posts. I read every single one. I feel like I'm a part of something very unique here

---

quote:

---

Originally posted by BetNitAll:
leaving tacoma now writting from wireless pda have great news will post asap

---

As I drove to Tacoma with my doors locked (it’s a very dangerous place for a white guy n a SUV) I was scouting for the NetFlix “huge” distribution center…I found the street it was on but couldn’t seem to find this huge warehouse. When I finally did find it, I noticed a couple of things. First, right next to the warehouse was the Tacoma Police’s meth lab clean up crew….yep..a huge cargo truck that said TACOMA POLICE MOBILE LAB. It looked like they just busted a meth lab…I was not surprised.

Second…the NetFlix Tacoma distribution center consisted of a building that was about 5000 square feet. I paced it off. About 100 by 50 square feet. It was in a little strip mall…you know, the ones that have a
7-11, small restaurant and a dollar store. Except this one had a Dentist office, a small store to make neon signs, and a hair cut place., and then NetFlix. Nothing glamorous about it. There was curtains covering all the windows and a penske rent a van out side. There was a small sticker that said, “NetFlix, No Soliciting” It was About the size of a bumper sticker. Inside consisted of racks of DVD and a cement floor. It was just a basic building about the size of a McDonalds or 7-11. There was a huge post office across the street though, and I think that’s all that counts.

This is what it looks to me happened. Netflix looked for post offices in Washington that had retail space next to them. Then they chose the cheapest crapiest one available. Good Job NetFlix. They are keeping their overhead low. I am not selling my shares of PGHI if it hits .01 or .10. This company has a lot of potential. If PGHI east coast distribution center just happens to be a farm house, then so be it. I would hope its not, but what can you do. I hope they had the sense enough to put it next to a post office.

If you ask me….someone is going to make a lot of money with the online game rental idea. I HOPE its us.

quote:

---

Originally posted by Magoo:
Mach

I did try to pick up some more share of PGHI on friday. I did snag just under 50,000 shares which added to a strong position. I will be at it again on Monday trying to buy at around .03 for another 300,000

I have been dealing in the bigger markets since 1975 so this is a nice distraction and nice to be involved in something from the ground floor.

I do have other tradeing friends which are going to be buying in once we do see the new web site and they are up and running in their new distribution center. I am going to be going to Kentucky myself before we dump a lot of money into this and talk with the CEO myself. That will be early January.

At that point I will be able to tell all that I find. My corporate lawer will be going with me.

Everything they have done so far makes sence as starting a company like this takes time to set it up right.

If all the ducks are in line this could be an excellent oppertunity for everyone who is in this.

Thanks to all for time spent on their reasearch

---

i agree with your post below about the benefits of a new distribution center.

it doesn't matter too much to me if it's run out of a garage, either. besides, i myself ran a small website from my bedroom years ago which i sold during the internet boom for a healthy profit.

the way things unfolded along with that satellite photo just got me thinking... but never panicked.

however, after reading the posts from the past day, i'm now less concerned about it.

in any case, i will keep looking around the edges and outside the box and will post anything of interest.

quote:

---

Originally posted by machtabow2:
Adrenalix,

First and foremost as a shareholder I respect and support the decisions that this company is making. At this particular stage in the progress of the company... it does make sense to have both an East & West Coast Distribution Center. The timeframe in which customers receive and are able to return their rentals will have a dramatic impact on their satisfaction and desire to continue their membership with Veegeez. Knowing that we are about to launch a new site and incoporate DVD rentals... The move indicates that we have a President that is looking to move forward agressively. It would not make sense at all to launch a new site and focus on growing your subscriber base to find out that your new subscribers are disappointed in the timeliness of their orders. Indeed... a company would desire to "have all it's ducks in a row." With respect to whether he has family in Kentucky.. I do not care to speculate... but will add that if in fact I were the President and understood that an East Coast Distibution Center was necessary... I might indeed consider at least trying to locate such a center in an are that I might have family and friends.

mach

---

1. 4/14/1998 Netflix opens first online DVD rental store. At this time Customers are receiving their DVD in 2 to 3 Days. Around 1000 titles available.. Sound familiar. At this time NetFlix’s free trial SUX, you even had to pay for shipping and it was only a seven day trial.

2. 11/19/1998 Title available now at 2,200

3. 4/12/1999 Instead of keeping a DVD for 7 days, you can keep them for two weeks. At this time they are charging $3.49 for each movie rental.. Doesn’t appear to have the monthly fee unlimited option yet. Titles available now at 3,100

4. 07/07/199 look what they accomplished by this time In Addition To Existing Promotions With Sony, Toshiba And RCA/Thomson Consumer Electronics, World's First And Largest Online DVD Rental Store Announces New Relationships With Panasonic, Philips, Sharp, Kenwood, JVC, Marantz And Mitsubishi
Promotions With Manufacturers Offer Free DVD Rentals To All New NetFlix.Com Customers

5. Another big announcement on this day NETFLIX.COM SECURES $30 MILLION INVESTMENT FROM GROUP ARNAULT

6. This one seems important too. http://www.netflix.com/Static?id=1020
They started their 19.95 a month unlimited movie rentals.

7. 01/02/03 NetFlix has more then 800,000 subscribers. WOW!!!!!

8. 03/17/2003 NetFlix plans to open 2 to 3 new shipping centers each month for the rest of 2003

9. 12/31/2003 NetFlix has almost 1.5 million subscribers. Most have their DVD’s the next day.

Everyone should go to the NetFlix web site and read through their press releases if you have not done it already. There are many more then I posted…. One thing stayed consistent from the beginning. NetFlix always seemed to have great advertising and great advertising ideas. They grew so fast and had a very rocky start. It looked like they were charging per rental and a shipping fee too. But after a while, they didn’t miss a beat…

By the way. Their patent is on their software. So we don’t have to worry about that.

It’s all going to be in the advertising. NetFlix also started with 1000 titles but their advertising was great.
“The Futures So Bright” is right.

It looks like one of the first things NetFlix did was offer free DVD rentals with a purchase of a DVD player from toshiba. I hope John has something like that he is working on. Offering free game rentals with purchase of X-Box or play station....what a way to increase your site exposure. I am going to write John

We had less then 100 people view our site today.....as soon as the new site is up and the east coast is ready...we need to get moving on the advertising. With NetFlix at more then a million subscibers and a big wallet they could easily do what no one here wants them to do. So we need to get this puppy rolling.. LETS GO JOHN......YOU SHOULDN"T BE SLEEPING....GET UP AND WORK.

[This message has been edited by BetNitAll (edited December 22, 2003).]

I live in the Boston area and found out that their Boston distribution center is actually in Worcester, MA which is about 1-2 hrs west of Boston. When I get some time I will take a ride out there and report what I find.

Thanks again!

j160e

quote:

---

Originally posted by BetNitAll:
Some quick facts

1. 4/14/1998 Netflix opens first online DVD rental store. At this time Customers are receiving their DVD in 2 to 3 Days. Around 1000 titles available.. Sound familiar. At this time NetFlix’s free trial SUX, you even had to pay for shipping and it was only a seven day trial.

2. 11/19/1998 Title available now at 2,200

3. 4/12/1999 Instead of keeping a DVD for 7 days, you can keep them for two weeks. At this time they are charging $3.49 for each movie rental.. Doesn’t appear to have the monthly fee unlimited option yet. Titles available now at 3,100

4. 07/07/199 look what they accomplished by this time In Addition To Existing Promotions With Sony, Toshiba And RCA/Thomson Consumer Electronics, World's First And Largest Online DVD Rental Store Announces New Relationships With Panasonic, Philips, Sharp, Kenwood, JVC, Marantz And Mitsubishi
Promotions With Manufacturers Offer Free DVD Rentals To All New NetFlix.Com Customers

5. Another big announcement on this day NETFLIX.COM SECURES $30 MILLION INVESTMENT FROM GROUP ARNAULT

6. This one seems important too. http://www.netflix.com/Static?id=1020
They started their 19.95 a month unlimited movie rentals.

7. 01/02/03 NetFlix has more then 800,000 subscribers. WOW!!!!!

8. 03/17/2003 NetFlix plans to open 2 to 3 new shipping centers each month for the rest of 2003

9. 12/31/2003 NetFlix has almost 1.5 million subscribers. Most have their DVD’s the next day.

Everyone should go to the NetFlix web site and read through their press releases if you have not done it already. There are many more then I posted…. One thing stayed consistent from the beginning. NetFlix always seemed to have great advertising and great advertising ideas. They grew so fast and had a very rocky start. It looked like they were charging per rental and a shipping fee too. But after a while, they didn’t miss a beat…

By the way. Their patent is on their software. So we don’t have to worry about that.

It’s all going to be in the advertising. NetFlix also started with 1000 titles but their advertising was great.
“The Futures So Bright” is right.

It looks like one of the first things NetFlix did was offer free DVD rentals with a purchase of a DVD player from toshiba. I hope John has something like that he is working on. Offering free game rentals with purchase of X-Box or play station....what a way to increase your site exposure. I am going to write John

We had less then 100 people view our site today.....as soon as the new site is up and the east coast is ready...we need to get moving on the advertising. With NetFlix at more then a million subscibers and a big wallet they could easily do what no one here wants them to do. So we need to get this puppy rolling.. LETS GO JOHN......YOU SHOULDN"T BE SLEEPING....GET UP AND WORK.

[This message has been edited by BetNitAll (edited December 22, 2003).]

[This message has been edited by BetNitAll (edited December 22, 2003).]

---

CASE IN POINT: THE IMPORTANCE OF A DISTRIBUTION CENTER IS THE ABILITY OF THAT DISTRIBUTION CENTER TO DELIVER GAMEZNFLIX TO CUSTOMERS IN A TIMELY BASIS... AS INDICATED BY THE SUCCESS OF NETFLIX AND THE FACT THAT THEIR DISTRIBUTIN CENTERS ARE NOT "LAVISH" BY ANY MEANS... DID NETFLIX SHAREHOLDERS SELL THEIR SHARES WHEN THEY FOUND OUT THAT NETFLIX WAS OPENING A DISTRIBUTION CENTER IN A HIGH CRIME NEIGHBORHOOD... A SMALL LOCATION WITH A CEMENT FLOOR? NO... THEY BOUGHT MORE BECAUSE THEY REALIZED THAT THIS WAS A COST SAVINGS FACTOR... THAT ALLOWED THEM TO SAVE MONEY AND FOCUS ON GROWTH AND BUILDING A LARGER CUSTOMER BASE. OUTSTANDING JOB AND EXCELLENT POINTS BETN. REALLY! MACH

*** THE FUTURE'S SO BRIGHT ***
MACH

quote:

---

Originally posted by BetNitAll:
Ok…here is the deal. When I read the post saying the NetFlix distribution center is in Tacoma I knew two things right away. One is…..I hate Tacoma…..so I wasn’t excited about driving there. it’s a long drive from where I live and it’s a piece of crap city. Crime and drugs are the name of the game there. Anyone who knows Tacoma knows what I am talking about. it’s the only place where you could still get a house for under 100 grand. But…it’s a big city and cheep too, so I thought NetFlix had the right idea, renting a huge warehouse for really cheep.

As I drove to Tacoma with my doors locked (it’s a very dangerous place for a white guy n a SUV) I was scouting for the NetFlix “huge” distribution center…I found the street it was on but couldn’t seem to find this huge warehouse. When I finally did find it, I noticed a couple of things. First, right next to the warehouse was the Tacoma Police’s meth lab clean up crew….yep..a huge cargo truck that said TACOMA POLICE MOBILE LAB. It looked like they just busted a meth lab…I was not surprised.

Second…the NetFlix Tacoma distribution center consisted of a building that was about 5000 square feet. I paced it off. About 100 by 50 square feet. It was in a little strip mall…you know, the ones that have a
7-11, small restaurant and a dollar store. Except this one had a Dentist office, a small store to make neon signs, and a hair cut place., and then NetFlix. Nothing glamorous about it. There was curtains covering all the windows and a penske rent a van out side. There was a small sticker that said, “NetFlix, No Soliciting” It was About the size of a bumper sticker. Inside consisted of racks of DVD and a cement floor. It was just a basic building about the size of a McDonalds or 7-11. There was a huge post office across the street though, and I think that’s all that counts.

This is what it looks to me happened. Netflix looked for post offices in Washington that had retail space next to them. Then they chose the cheapest crapiest one available. Good Job NetFlix. They are keeping their overhead low. I am not selling my shares of PGHI if it hits .01 or .10. This company has a lot of potential. If PGHI east coast distribution center just happens to be a farm house, then so be it. I would hope its not, but what can you do. I hope they had the sense enough to put it next to a post office.

If you ask me….someone is going to make a lot of money with the online game rental idea. I HOPE its us.

I will try and post some pictures later….right now my software for my digital camera is on the fritz

---

quote:

---

Originally posted by Marcidius:
FINALLY!! My Lowtrades account is open and I have a limit order in at .029, you guys think this might get filled today? Or should I just do a Market order at .031 to make sure I get a position?

---

quote:

---

Originally posted by j160e:
Great posts BetNitAll! Thanks for putting those facts together. I too was reading through some of those press releases along with the annual report on their website. Promotions with manufacturers is huge for exposure. Let's hope that once the new website is up, the advertising begins.

I live in the Boston area and found out that their Boston distribution center is actually in Worcester, MA which is about 1-2 hrs west of Boston. When I get some time I will take a ride out there and report what I find.

Thanks again!

j160e

---

Thanks for your post on the outlet in Tacoma.

Sounds like you are in my neck of the woods. I live in Blaine Washington which is on I-5 just at the Canadian border.

I am going to New York on a work related trip. That is scheduale for January 18. I will be getting in touch with john Flemming prior to that and see if I can see him prior to or after I get to New York.

I do not have any doubts about PGHI but would like to see and speak to John myself before I am willing to have my friends go in heavy on the company. We are buying into the company this week as to get in on the ground floor but plan to put in enough cash which will give the company a good boost.

It is the right of the shareholder to have full disclosure on all the assets and legal filings of the company. My corporate lawyer will be with me and he is well versed on these matters. Thay is why I need to speak with John so he will be able to gather information. I am sure that he is tied up with the move at this time.

Once again do not take this as me haveing any doubts on PGHI just want to be carefull with recomending to my friends before they put in a larger amount of cash. We are new to the pennies so it is one step at a time for us.

As far as the location in Tacoma goes. Tacoma dose make sence as it is about 50 miles south of Seattle and between the two the population base must be about the same as all the rest of Washington and most of Oregon. Tacoma dose have it"s problems but also is one of the hubs of business for the northwest. I personally would not live there but would not hesitate to open a warehouseing business there.

This will be my last post of the day as I need to get to work.

It's always great to have things "thrown on the table" to discuss. The messages and viewpoints of shareholders that followed were great. To see the intense Satellite DD followed up with a drive to a Netflix location by Betn with details of that location is outstanding. This is quite the trading "Team" we have here. mach

quote:

---

Originally posted by adrenalix:

mach-

i agree with your post below about the benefits of a new distribution center.

it doesn't matter too much to me if it's run out of a garage, either. besides, i myself ran a small website from my bedroom years ago which i sold during the internet boom for a healthy profit.

the way things unfolded along with that satellite photo just got me thinking... but never panicked.

however, after reading the posts from the past day, i'm now less concerned about it.

in any case, i will keep looking around the edges and outside the box and will post anything of interest.

---

Go PGHI

quote:

---

Originally posted by COOLORANGEFREEZE:
Volume already at 602,718...

---

PSU

quote:

---

Originally posted by machtabow2:
Yes... considerable difference from our 9000 volume at this point on Friday. As I said... "Calm before the Storm" mach

---

you can count me in...I would really like to talk to Mr Fleming face to face.

buck

quote:

---

Originally posted by BetNitAll:
Any chance of making this a group of investors going to see John Fleming. I would love to make that trip, and am more then willing to go. Any one else want to or can go?

[This message has been edited by BetNitAll (edited December 22, 2003).]

---

quote:

---

Originally posted by PSU90:
Good morning Mach.....looking good here this morning! .031x.034 as I type. Looks like the MM's might not get that that "take down for shares" they wanted!

PSU

---