posted
GZFX needs 72,000+ subs to be profitable!!!
Has anyone looked into the financials and done the math rather than just beliving what JF tells you? They net $46.67 per sub after COGS. The cost of operating the business is $1,417,000. That means they need over 72,000 subs to break even if cost of advertising and THEIR SALARIES don't increase! Sorry guys but this company isn't going to make it. I can't wait to see the sell off if the CC deal goes through or doesn't. Its going to be a blood bath either way!!! Everyone will sell off to get back what they lost if the deals goes through. And if it doesn't were looking at $.0001 stock!!!
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quote:Originally posted by Joem: I don't know where people get the idea that the CC deal is dead, as there is no info to support the claim. As to the request for extension by GZFX, one might surmise that reasons for that could be as follows: 1. since gzfx is paying cc for subs, it would be prudent to know they are staying after the free trial. 2. how soon they need more distribution centers based on volume. 3. whether paying out to CC at the rate they are is beneficial to both companies as CC has to keep up their end of the arrangement which is instore marketing.
any comments?
I stop following gzfx. been busy with school. also i'm 10K down the hole. My question is, why stop at 17 stores? Why not add 1 or 2 if the deal is going to push through anyway, right? All of the sudden, everyone's attention has shifted to VOD. I can understand the dilution. for me, it could go either way, they need money for march. however, why so quiet about CC?
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quote:Originally posted by Mysticobra96: GZFX needs 72,000+ subs to be profitable!!!
Has anyone looked into the financials and done the math rather than just beliving what JF tells you? They net $46.67 per sub after COGS. The cost of operating the business is $1,417,000. That means they need over 72,000 subs to break even if cost of advertising and THEIR SALARIES don't increase! Sorry guys but this company isn't going to make it. I can't wait to see the sell off if the CC deal goes through or doesn't. Its going to be a blood bath either way!!! Everyone will sell off to get back what they lost if the deals goes through. And if it doesn't were looking at $.0001 stock!!!
Dude, your math is totally wrong. Think about it (especially the time factor) and post a followup.
2 dimensional thinking will killa ya.
-------------------- "Please note that every week from now until the end of time is a 'coming week.' "
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posted
I've been busy with school myself. I got out with intentions of a drop but not extremely bad news and results like this. The trading has been extremely dead too. Looks to me like everyone is holding and only dillution is selling off to the guys buying in.
They were quiet about the CC deal before it happened, after it happened, and till the extension. remember GZFX isn't big on reporting stuff to get their price to go up. When they are definitely extending it or doing a roll-out, they will say so and only once. There's no way to tell what's going to happen. And remember the quote about NetFlix expecting to be negative and not making money for a long time. You have to start out in the hole to climb out. And it takes time.
-------------------- This is some pretty gay Mc. Bestiality.
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posted
Mistic is right on. Plus you have to account for the 1 time sub payment to CC in your equation, which I believe is 2 times a single month’s fee for the 3 out plan. After you factor in the sub payment to CC, it will take GNF 2 additional months to break even on that sub, given they, the customer, do not cancel their service. Otherwise, GNF is out the sub payment and in the hole.
There is no way in hell the company can report 115% sub increase and only make 9K more in the 4th qty. Something just doesn’t jive with that number.
The point of it all is we shouldn't really be looking at the financials because ever since the beginning that has said the price should go down. This is a penny, all that really matters is the mood of the stock. When they release "NATIONAL ROLL-OUT TO CC!" people don't give a damn whether they're losing money or not. That national roll-out could mean the death of the company from advertising costs and people canceling the service just after signing up because they suck. But the point of the matter is that the share price would fly like crazy for awhile. Financials only come in after the dust has settled and all the smart guys have taken their whopping profits from the idiots jumping in too late. (Idiot=man/woman who doesn't even know the company or did not DD)
We can still buy in with anticipation of the CC roll-out. But the mood of the stock says it's unlikely to happen. But who knows. In two weeks we could all be going beserk because we can't figure out why the price is shooting up. It's the mood of the stock.
And if you watch the mood of the message boards, you might just get hints as to what will happen too.
-------------------- This is some pretty gay Mc. Bestiality.
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posted
Quote Dudanation We can still buy in with anticipation of the CC roll-out. But the mood of the stock says it's unlikely to happen. But who knows. In two weeks we could all be going beserk because we can't figure out why the price is shooting up. It's the mood of the stock.
And if you watch the mood of the message boards, you might just get hints as to what will happen too ------------------------------------------------
I agree totally. People with bad results using gameznflix are not close to the trial stores, I am and it takes only two days there and two days back, as to the issue of being a long term going concern your in the wrong category of stocks.
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posted
They sure are taking a long time to release the new website. I thought I heard it was in beta testing back in December and here we are in mid Febuary and still nothing, mmmmm. Don't you think they would want to release the new website before they get to March 15th? They don't have much time the closer we get to the CC date I will start to question things they have put out that they were working on.
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FRANKLIN, KY, Feb 10, 2006 (MARKET WIRE via COMTEX) -- GameZnFlix, Inc. (OTC BB: GZFX), an online provider of DVDs and video games for rent or purchase, today announced it has acquired DVDavenue, LLC., an online provider of DVDs for rent, based near Washington D.C. Financial terms of the transaction were not disclosed.
"This is a great acquisition for GameZnFlix as this will result in increasing our membership base, acquiring thousands of titles and adding a new distribution facility," said Donald "Chip" Gallent, President of GameZnFlix.
"We feel that consolidation of the online DVD rental market is overdue and that becoming part of GameZnFlix offers our customers more value per rental dollar spent," said Richard Thomas, Managing Partner of DVDavenue, LLC.
As part of the transaction, existing DVDavenue customers will be transitioned over to GameZnFlix's service. The transition is slated to be completed within 30 to 60 days.
GameZnFlix Chairman and CEO John Fleming added, "As we grow our business model we will continue to look for acquisitions where there is a solid business fit. The DVDavenue acquisition met our requirements and the management of both companies see the benefits for members of both services."
GameZnFlix is a company that offers video games/DVD movies for rental or purchase on the Internet with access to over 40,000 games and movie titles. With different membership levels beginning at $8.99 a month subscribers can rent a combination of both video games and/or DVD movies with no late fees or due dates or members can purchase video games and/or DVD movie titles at a membership discount.
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posted
woopty frickin doo,more overhead and debt,well they will just dilute this back down again. Use it as a play only folks and then pull those funds back out quick.
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quote:Originally posted by CrashtehLine: ...increased subs, revenue, and distribution center....how is that more overhead and debt?
They have to pay for all of that. They have to pay for rent on the distribution centers, workers. The debt will come from the initial acquisition. Acquiring another company isn't like a war, JF doesn't march in there saying I claim this in the name of gzfx.
They have to pay for the company, the titles, they probably have to give them money per subscriber, and then every month they have bills to pay on the distributino center that they now have.
How are they going to pay for all of that, they aren't profitable or even at a break even point, so they dilute more.
Dudantion is right about news reflecting the stock price. If there is extremely good news for GZFX then you'll see a jump in price regradless of what the o/s is, look at USXP they have about the smae amount of o/s as gzfx but it made a huge jump. Likewise bad news will crush this stock.
-------------------- All of my posts are only my opinions unless otherwise stated. With that said let's make some money
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posted
Looks like everyone is to scared to buy in because they usually have good news followed with a bomb...plus the sales that do go through won't move it much because of sooooo many shares...but maybe they can raise it up just a tad...
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!
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posted
You know why this news didn't do much? They're dilluting on it. L2's showing quite a few sell-orders. More than likely a combination of people taking the profit they can and of course the mighty ARCA of the dillution. They need to pay for all this. I wish they didn't have to dillute to pay for it, but on the good side of things, the money is still going towards boosting the company.
I look at it this way. This is a positive gesture towards the CC deal still going through. If they are aquiring more titles that means that they need more inventory to keep up. Either they are sucking now and need the back-up quickly or they are preparing for something big. (CC roll-out) It is possible that the CC deal was delayed so that they could have more time to find the capacity to handle the deal. The reason our prices dropped so much was because the extension of the pilot meant it wasn't going national or they needed more time to decide whether it was worth it. Now, to me, I think it's because GZFX isn't ready and needs to fill their capacity. I believe this because in the webcast update they said they were going to focus on being able to provide a better service rather than upping their subs too fast beyond that capacity.
Buy/Sell opinion? Sell. It's going to go back down, everyone will take profits off of this. Just take the 10% and buy back a level down or more, depending on when you think the roll-out hype might start up. I'll be buying back in soon. My gut tells me that there's still a chance of this thing taking off with a roll-out. I just hope they have enough to do it and they won't extend the damn thing again. But if they do extend it, we know exactly why for sure. Because a dying company would not have CC holding onto them for that long.
Also, notice this is based on judgement of L2's and only the result after 50 minutes from the release of the news. This may boost up confidence in the stock and put us up to the .009's. But I still think the selling pressure is too high for it to go much further and definitely not past that. But who knows, maybe we'll get a good pre-market out of this on Monday. Weekends work wonders.
Any other opinions?
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posted
There are really only 2 more hype PR’s that we know of that are coming, 1 the website, and 2 the CC deal. The website will probably not do much for the PPS because everyone knows it is coming and that is a given. The CC deal, however, will drive the PPS in either direction based on the outcome. So, what do you do? It is pretty much a gamble at this point. I would venture to say, the PPS will go up some with the deal, possibly back above the penny mark, but if there is either an extension, again or a cancellation of the agreement, the PPS will be forever returned to supper sub penny land. The real question is, can we expect another gradual run up of the PPS an anticipation of the March 15th date? I will pull out my crystal ball and relay the answer in the next few weeks. LOL
quote:Originally posted by jat35: There are really only 2 more hype PR’s that we know of that are coming, 1 the website, and 2 the CC deal. The website will probably not do much for the PPS because everyone knows it is coming and that is a given. The CC deal, however, will drive the PPS in either direction based on the outcome. So, what do you do? It is pretty much a gamble at this point. I would venture to say, the PPS will go up some with the deal, possibly back above the penny mark, but if there is either an extension, again or a cancellation of the agreement, the PPS will be forever returned to supper sub penny land. The real question is, can we expect another gradual run up of the PPS an anticipation of the March 15th date? I will pull out my crystal ball and relay the answer in the next few weeks. LOL
Don't forget the military deal that is floating around also.
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