A New Partnership: Circuit City and GameZnflix Mar 29 2006 8:07:33 pm Stock Market Analysis by Lonny Rosenfeld
When I wrote my first article on GameZnflix (OTC BB:GZFX) last November I stated that I very rarely write about penny stocks, but I thought this one had a lot of potential. So far I have proved myself to be correct. On Friday, March 24th Circuit City (CC) announced that is will go ahead with a nationwide release of the GameZnflix movie and rental service. In the fourth calendar quarter of 2005, the two companies tested offering the GameZnFlix services at a limited number of Circuit City Superstores and online at circuitcity.com. After concluding the tests, the services will now be expanded to include Circuit City Superstores across the United States and will continue to be available nationwide on Circuit City's website. (MARKET WIRE via COMTEX)
"We want to offer a variety of products and services to our customers and the GameZnFlix's program allows our customers to experience the convenience of renting both movies and games through the mail," said Bill Cimino, director of corporate communications for Circuit City.
The agreement calls for a rollout of GameZnFlix's service by offering prepaid service cards at each of Circuit City's Superstores. The agreement calls for adding between 45 and 110 locations each month until full deployment is reached prior to the 2006 holiday season. Financial terms of the agreement are not being disclosed.
"This relationship is a win-win for both companies," said John Fleming, chairman and chief executive officer of GameZnFlix, Inc. "Circuit City continues to prove to be one of the top destinations for movie-lovers and video gamers alike and by co-marketing with GameZnFlix, Circuit City can continue to fulfill its customers' needs by adding our rental services to its product line."
For those readers who are unaware of this company, GameZnFlix is a company that offers video games/DVDs for rental or purchase on the Internet with access to over 40,000 titles. With four different membership levels beginning at $8.99 a month to annual membership with an average price of $20.75 per 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.
As anyone would expect, shares of GZFX received a huge pop at the open Monday morning. Shares surged more than 125% early in the day to trade at $.0209 on extremely heavy volume. As Monday progressed shares trimmed these gains in half. GZFX last traded Wednesday at $.0134, up 12.61% for the day. Trading for the first half of this week has been relatively predictable. Almost everyone had expected a big gain early Monday, followed by some profit taking later in the day and Tuesday. Wednesday was another day where many investors either bought back in after selling early Monday or others jumped off the sidelines to get in at a more reasonable price.
Given now that it is known that the Circuit City deal is in full effect, what does this mean for the future of GameZnflix? Clearly as I have stated months ago, the potential is truly there for this partnership to be a success. Circuit City has done its part; they have opened the door for a relatively unknown company. Now it is the job of GameZnflix to step up to the plate. This is the big leagues now, do not strike out.
I know many you reading this article are reading this because you are either share holders of this company, have been share holders, or you are thinking about becoming a shareholder. Remember this is a penny stock, so of course there is a high level of risk involved, but is that high level of risk a risk worth taking?
Looking at the 6-month chart above, there are very well defined support and resistance levels. These will be the areas that will dictate trade for the short term. There is currently resistance located at $.021; this was reinforced on Monday's trading when shares topped off at $.0209. There is also support located at $.012, this was the low of the day on Wednesday before shares bounced off this level and ended the day higher.
What can be expected of shares of GZFX over the course of the next few months? I would expect to see a lot of volatility as investors try to weigh the future of this company from any news releases concerning the Circuit City partnership. There is a strong likelihood that shares of GZFX will move significantly higher from their present level. Circuit City is no laughing matter, this company would not have reached out and extended its hands to GameZnflix if it did not think it would benefit as well from this deal.
This is truly a company to watch and it will be very interesting to see how this partnership evolves in the future.
posted
Alright guys. The last few days i have been pretty damn accurate. Here's my forecast for tomorrow. I see us opening up and heading up a little, I'm expecting a pull back to about 0.0128 or maybe 0.0129. After that it should go up a bit and continue the uptrend. I'm expecting this rebound because look at last time we ran:
here's my chart.
Red line is now a suppourt for us, so if we go past 0.0128 tomorrow i expect it to hit the red line.
As for PURELY guessing I'm going to say we get another good PR Friday afternoon that will make next wweek great. If we got news Friday we would be in an Uptrend with good news...and THEN we would see some higher Cents.
-------------------- If you do your 20's right, You are set for life. Posts: 659 | Registered: Nov 2005
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I was thinking about it; and we all know how JF was talking about how he hated flippers and it seemed like he wanted to burn them. We all figured the PR on friday was to burn them, then we saw a repeat on tues. Well, I was thinking about it and I have a feeling that the PPS would be about 2x what it is now if he would have thought about the PPS more than the flippers.
I believe by him putting the PR out on friday it gave ppl a long time to figure out a game plan. Most were predicting .03+ so Im sure a lot of ppl saw that and figured they would try to get out sooner, hence the .02 move. It also, made it so, quite a few ppl didn't want to jump in b/c they figured everyone would bail. I have a feeling if they would have released the PR mid day on monday that we would be riding a huge wave right now. It would have caught some ppl off guard and I think the PPS would have held up a lot better. I do believe that either today or the EOW will be the reversal with next week bringing a great rise in the PPS, but I just think it might have sustained a better run if he would have released a mid day PR. What are others thoughts on this?
Posts: 671 | Registered: Nov 2005
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posted
Sounds logical to me mystic, I know that a steady climb over a huge jump is better so by him doing this I think alot of people thought,screw it and held out.You are on the money with the theory and I do think we will see a pr if not two before the end of the week.
posted
This thing moved more on speculation in January, of course we didn't know at the time that he bled out shares to the market in a big way - but I definitely notice people dont have the same hopes for this as in the past (25 cents?).
-------------------- Well done is better than well said. Ben Franklin Posts: 718 | From: Bay Area, CA | Registered: Aug 2005
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posted
Hey well I went to rest on stocks for a while cause of my new job. Last time I was anywhere near these boards was like Nov/Dec. So hello ya'll!
Anyway, I dont care what anyone says or thinks cause thats just it, its always opinion. I like to look at the facts. I'm warning you that if you realize the crazy potential of this stock based on this latest fact you may crap your pants. THis is the 3rd time I'm considering getting back into this stock. First was in the beginning when it made it to the teens (.16), short lived but way awesome. THen the next time I got in a little late but got out ahead with the annoucement of the trial partnership deal and the steady climb. But for the first time we have a legit 100% huge deal in the works. People we have CC backing GnF!!! Accross the country! Holy CRAP(PING) my pants!! Gonna radar this company hardcore again and look to buy me some more! GOod luck everyone whos already in!
Posts: 2794 | From: nyc | Registered: Aug 2005
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posted
I too have found it strange that both PR's were released in the aftermarket. Indeed, it is a fact that we get a faster high price out of a release rather than mid-day release. mid day releases get jerked around all day and it never makes it as high as it should. Why would JF benefit from this? Dillution at a higher pps! I doubt it has anything to do with him hating flippers. But it definitely does kill any chances that they can make much money on the daily trading. At this rate, you need to guess the day before a PR, get in and catch the premarket rise.
Besides all of this analysis, i think most of it just turns out this way. I wouldn't think JF cares about the pps anymore than what value he gets his dillution at. I am not trying to make him seem like a cold-hearted *******. Dillution is positive for the company, bad for the investors. But investors holding onto the stock and making money makes the company lose money (if they were to rebuy the stock) unless they dillute. So... GZFX and any other penny should not care about investors as long as they keep buying. They will care once the company actually turns a profit and can afford to go on without dillution, which is what everyone wants to see so there will be no more bag holders losing money
-------------------- This is some pretty gay Mc. Bestiality. Posts: 948 | From: Boston, MA | Registered: Oct 2005
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Crash! I don't know why you only have 2 stars but I've been reading your stuff for a while & I just rated you a 5!
Posts: 4363 | From: waldorf,maryland,USA | Registered: Mar 2004
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quote:Originally posted by iwearpro: What is up with all of these 0 trades after hours? Anyone?
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probably just mm cruchwork, dont think it means anything. once its 4 PM i think that its done trading, aside from the overseas market. which opens at 2:30 eastern am. I could be wrong though, this is my best guess.
Posts: 6397 | Registered: Jan 2006
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posted
iwearpro checking in here......Goooooood morning America!!!!we are going to have a very good GZFX day today! Posts: 1077 | Registered: Sep 2005
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posted
iwearpro checking in here......Goooooood morning America!!!!we are going to have a very good GZFX day today! Posts: 1077 | Registered: Sep 2005
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posted
Hey, Pro I really wanted to thank you. I have etrade pro also, but after looking at your setup I decided I should change my chart to every min. Man what a difference, its really giving me a good idea of when to get in and out on a min by min basis. Just wanted to say thanks!
Posts: 671 | Registered: Nov 2005
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imakmony2005
unregistered
posted
yep, Now which way we going today? I SAY UP.
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quote:Originally posted by Mysticobra96: Hey, Pro I really wanted to thank you. I have etrade pro also, but after looking at your setup I decided I should change my chart to every min. Man what a difference, its really giving me a good idea of when to get in and out on a min by min basis. Just wanted to say thanks!
Hey No problem.It does takes some trial and error in set-up but I found this to be the right set-up for me. Lets all hope for a good day today.
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