same question here
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Quote from: fill_the_gap on April 27, 2006, 08:34:27 PM
You know I have been a GZFX advocate for over a year now. But the 10Q was an eye opener for those wanting to make any money on GZFX.
It seems all the eggs are in the basket for Circuit City. Very dangerous. What if CC cancels? What if rental become unpopular? And if you run the numbers, CC will not help them much in 2006 considering the Net Loss figures going up much faster than revenue. So how far out can it go before VOD sets in. And do not tell me that GZFX VOD is going to be a player. A waste of money.
Problem is that they pay alot per subscriber to CC. This is not very profitable to GFZX unless a sub is maintained for several months. Any churn further hurts the Net Loss.
After reading the Q, it is obvious that GZFX has major issues. Worse than most ever realized.
They maxed out Authorized Shares and added 25 billion total to pull from if they want. That is never good to see happen, especially when the CEO said no more dilution was happening and then slapped 2 billion more shares on the previous Q. Who knows when they will stop selling shares for cash and GG converting.
The lower the PPS, the harder it will be to move up. The GG conversion schedule is brutal for shareholders.
Net Loss went up 135 % to 1.5 million dollars ! Net is the bottom line. Increasing revenue does very little if Net Loss increases more.
Subs are the revenue source. They only averaged 666 subs over the last 3 months when expecting 1500-2500 as stated in the last Q.
Circuit City pilot program did not produce many subs. GZFX has also stated that CC will account for very little in 2006 as they ramp up.
With Golden Gate debentures and GZFX selling shares to get cash, this is only a play on news.
But with the big CC news come and gone, who knows when anything substantial will come. Until then, trading the chart is the only way. Those waiting for a big payday here, good luck.
So many people fell in love with GZFX on the CC story. Time to take off the blindfold. Emotional trading never has helped anyone. This is why investing in an OTC is not often done. The same pattern occurs, hype, dilution, hype, reverse split, more dilution. Ask yourselves who is making all the money here.
The financials were much worse than expected. Maybe a trade on news off of moving averages if possible. Nothing more. Too many other stocks to make money on.
Quote from: Wax on March 02, 2006, 10:16:38 PM
I was reading some other message boards and read after the acquisition happens it will all be merged under a new name/ticker. Seeing as this company actually paid dividends I think we might have some room to play here. USXP started in a situation just like this (stock price + activity). You just never know. Once I bag I am selling my entry and riding the rest for a few months.