GZFX.OB !!!

[RJ]

Mr Domination,

You arrived here strangely enough the same day of the CC conference call (registered). There are a few individuals on the CC message board that took up GZFX bashing on the CC board yesterday also. Maybe it is fate, maybe coincidence, but I find it a bit odd that you show up here. There were 3 individuals that focused mainly on GZFX and not on Circuit City. Might you be one of those? If I am wrong, you may have someone smite me to zero, and you will have my deepest and sincerest apologies. If I am right, could you please go back and leave us in peace?

RJ

[godspeed06]

any news in the conference call? looks like gzfx is just gonna bounce around these levels til news breaks.

[rurouni]

Mr Domination,

You arrived here strangely enough the same day of the CC conference call (registered). There are a few individuals on the CC message board that took up GZFX bashing on the CC board yesterday also. Maybe it is fate, maybe coincidence, but I find it a bit odd that you show up here. There were 3 individuals that focused mainly on GZFX and not on Circuit City. Might you be one of those? If I am wrong, you may have someone smite me to zero, and you will have my deepest and sincerest apologies. If I am right, could you please go back and leave us in peace?

RJ

I thought I was the only one who noticed that.  I find a lot of his comments on other threads odd and out of context.

[RJ]

RUROUNI,

THANKS FOR THE SUPPORT...HARD TO STEP OUT THERE SOMETIMES WHEN YOU SENSE SOMETHING OUT OF BALANCE...

rj

[fous]

Price action still being anti-nomadic on low volume. We need PR about this CC deal going national to get this one moving again.

RUROUNI,

THANKS FOR THE SUPPORT...HARD TO STEP OUT THERE SOMETIMES WHEN YOU SENSE SOMETHING OUT OF BALANCE...

rj

Im in for the support as well as i don't neccessarily like to see comments like that here at the 3sof boards.

-fousc

[higherstocks]

 It looks like the company is actually going to try to get into the black but it will be at the investors expense.  The company has gone into a pillot program that will include 17 stores and if that is successful will move on from there.  The company is currently adding 2,500,000,000 at .01 shares to the outstanding by offering them to the public. 

The management at the same time is taking care of themselves and will get their share of the proceeds.  The CEO has just been given a $200,000 per year salary with a 15% increase each year.  The President has been given a $150,000 salary with the same increases.  As soon as they filed for a 2,500,000,000 they obviously decided to get their share of the pie.  This will be a terrible dilution to the companies stock.  I can just about guarantee you that if any company takes over GZFX there will be a massive reverse split at the same time.

[Calvin87]

Price action still being anti-nomadic on low volume. We need PR about this CC deal going national to get this one moving again.

I agree.  I expect things to remain relatively calm until then.  The stock will probably bounce around 1.2 - 1.4 until we hear some more news -- our little triangle is getting narrower and narrower, and GZFX will either break through the resistance, or fall below the ascending trendline.  It'll be interesting the watch.

[fous]

The company is currently adding 2,500,000,000 at .01 shares to the outstanding by offering them to the public. 

Hey higherstocks,
Ive read in their SEC filings that the issuance of more outstanding shares is a possibility though i havn't heard or seen anything about them actually filing for the dilution of the 2.5 billion shares. Where have you recieved or read this info as i would like to see it myself?

Thanks,

-fousc

[Malum2006]

unless 30 days notice is given to the contrary, the national program will commence
Term of the Pilot Program. It is the intentions of the
Parties that the Pilot Program shall commence on or about
November 1, 2005, extend through the holiday season, and
terminate on or about January 15, 2006.

Thereafter, unless 30 days notice is given to the contrary, the national program will commence

under the same terms and conditions
contained herein and will be implemented on a phased-in
basis over the following 12 months in all of the Retail
Stores. It is anticipated that approximately 55 Circuit
City stores, per month, will be added on the national
rollout portion of the Agreement.

http://www.sec.gov/Archives/edgar/data/1099234/000109432805000215/0001094328-05-000215.txt

[FurrySound]

Anyone have a transcript yet? tia

[LiveLife]

I had a relapse of the flu and haven't been doing much.  I have been catching up on the reading of the postings.  This is my opinion on "What if Netflix adds games?" question:

I believe Netflix adding games will help GameZnFlix.

This is why.  Why did Netflix succeed even if consumers did not get their movies immediately the same day from Blockbusters?  I believe no late fees was one of the primary reasons.

And why are some Blockbusters reimplementing the late fees again?  Because people are holding onto new releases instead of returning them to the store.  Return of late fees is bad news for Blockbusters and will drive consumers to alternate online rental services or suffer paying the stiff late fees.

One of primary complaint consumers have about Netflix is that they can't get their choice of movies on their list and even though Netflix can ship in one day, sometimes it takes several days, if not more than a week to get their selections made available and shipped out to them.

What will come down to is probably this: "Can GameZnFlix maintain service that is better than Netflix?"

Just as consumers left Blockbusters for Netflix, consumers will leave Netflix if quality of service is not acceptable.  And why should consumers choose GameZnFlix?  Only if GameZnFlix can offer better quality of service than Blockbusters and/or Netflix.  For many consumers, waiting another day for their games/movies to arrive may not be an issue "IF" they can keep getting the selections on their list.  I believe this will be the crucial point for GameZnFlix.

Netflix adding games may attract more consumers, but will they be able to maintain the level of service that is necessary?  If they were, I believe Netflix would have added games or bought out a game rental service by now.  The fact that Netflix hasn't done so yet may indicate that Netflix management considered adding games but decided against it because it may not benefit revenue/quality of customer service.

As a side note, since hitting $30 in November, Netflix has been on a downward trend.  If this continues, I believe money may leave NFLX and go elsewhere, possibly to GZFX.  I suspect many NFLX traders may have traded both stocks as they went up and down.

So when will we know if GameZnFlix is providing "better than Netflix" service?  If they are, I believe word of mouth will be the first indicator to come out within weeks followed by "legitimate" rating service postings.

GameZnFlix has the potential advantage over Netflix to provide better service.  Since they already rent games, they have the advantage on that aspect already over Netflix.  GameZnFlix don't have to "beat" Netflix, it just have to take a small percertage of their customer base from Netflix or subscribe enough new members.  I am quite certain GameZnFlix management knows this and will do things to effectively achieve positive revenue generation by early 2006.

When Hansens Natural Soda started their regional to national distribution more than 30 years ago, they did not aim to "beat" Coca Cola or PepsiCo and they turned out to be very profittable.  It may be that Netflix and GameZnFlix coexist in the marketplace like Ford and GM.  If Netflix does add games but provide less than the level of service that GameZnFlix is providing now (or GameZnFlix improve their level of service, say by adding more distribution centers) then it will only benefit GameZnFlix.

Any comments from actual members of GameZnFlix as to if you are receiving your selection choices?

[FALCON64]

Higher, how can I get some of those shares for $.01.  Are you sure about this? Why would they sell at that price when their stock has been as high as $.025 recently? Right now its $.013 but thats still a  20% discount.

[godspeed06]

yea, i think the sec filings mentioned the 2.5 billion share dilution as a possibility, but theyve also already said that they are financed for years to come. theyre also about to reach the break even/profitable point. i dont understand why they would dilute their shares so much just to make some cash when they are already financed and near making profit.

[LiveLife]

Here's an exerpt from analyst's upgrade of Netflix

http://biz.yahoo.com/ap/051221/netflix_mover.html?.v=1

"At the same time, Wilbe believes Netflix's competitors will have a tough time copying the company's business model in a profitable way because of logistical issues and scale. He estimates that rivals would need between 2 million and 4 million subscribers just to break even.

Competitors Blockbuster Inc. and Wal-Mart Stores Inc. entered the online video market in 2004, but Wal-Mart earlier this year agreed to hand off its online DVD rental business to Netflix. Wilbe expects Netflix to further increase barriers for companies looking to enter the market by cutting prices."


The article did not mention other online rental companies like GameZnFlix and states that Netflix currently has 3.5 million subscribers.  I wonder at how many subscribers did Netflix reach the profittable point?  I believe GameZnFlix needs only a few more thousand subscribers before they are in the black.  While Netflix is advertising $9.99/month price, GameZnFlix already has a lower price of $8.99 for the one-out service.  When comparing side by side, consumers will certainly notice the price difference.

Also, isn't this article a positive news for online rental companies in general indicating a growing consumer trend away from traditional in-store rental to online rental?

Like I mentioned in the previous post, GameZnFlix doesn't have to beat out Netflix to be profittable.  It just needs to take a small percentage of this growing market.

[fous]

P.S. Like i said i signed up for the 14 day Free trial for 2 dvd/games out at a time last night at like 1:30 am. Just checked my account queue and the first 2 dvd's have already been shipped! Thats pretty damn good if you ask me, Lets see how long it takes to get here.......

Well my movies finally arrived today 5 days later. Which isn't too bad i guess when i compare it to how long it takes for something i order off the internet to get here with ground shipping from another state. Though when i compare it to Netflix, they outperform GZFX by far. Heres why:

-Netflix has 37 distribution centers accross the US. Fortunatley the closest one to me is about an hour away in Salem, Oregon. So it takes only one day for Netflix to reach me. My girlfriend recently signed up for Netflix, tried to convince her to go for GZFX but they don't carry tv series shows like desperate housewives and sex and the city DVD's which she wanted. So she signed up for Netflix. And now im glad she did sign up for Netflix cause otherwise we would be waiting 5 days to get our movies

In light of my experience with GZFX, though Netflix completly outperforms them, it doesn't dampin my spirits on GZFX. Its alsmost unfair to compair the too companies. Yes, they provide the same type of service. But Netlfix is an established company and has had time to grow. GZFX is just starting out so im not expecting them to be better than Netflix.

Though for them to continue customer growth i believe the first thing on their list to be done is to expand their distribution centers so they can decrease the transit time of DVD's/Movies to customers. Cause to be honest, i dont wanna wait 5 days for my movies when i can get them from netflix in a day.

As well im not ever expecting GZFX to be worth $25/share like Netlfix. But the potential to be worth more than a penny or 2? without a doubt. I still got faith in GZFX and think 06 has the potential to be a big year for their company.

As for what higherstocks said about the company in the process of the dilution of 2.5 billion shares i have not heard anything about therefore i believe it is untrue. In their 10-QSB filing released on 11/15/05 states that as of the pps of november 10th at .01, If the market price drops 25% to .0075 then they will dilute 2.5billion shares. 50% to .005 then 4.1 billion shares diluted, and 75% to .0025 then they will dilute a whopping 8.25 billiion more shares.

Heres from the Filing:

(g) Adjustable Conversion Price Feature of Debentures Could Require the Issuance of Greater Number of Shares.

The Company's obligation to issue shares upon conversion of the convertible debentures to Golden Gate Investors, Inc. (see Liquidity and Capital Resources, below) is essentially limitless. The following is an example of the amount of shares of GameZnFlix common stock that are issuable upon conversion of the convertible debentures (excluding accrued interest), based on market prices 25%, 50% and 75% below the market price as of November 10, 2005 of approximately $0.01:



                               Number           % of
% Below         Price Per    With Discount    of Shares    Outstanding
Market            Share         at 18%        Issuable        Stock

25%             $0.0075       $0.0060       2,735,000,000      73.90%

50%             $0.0050       $0.0040       4,110,000,000      80.97%

75%             $0.0025       $0.0020       8,235,000,000      89.50%


So .0075 is the price that we need to watch out for in the case of dilution. Though im not worried at all about this dilution, because i would be out of the stock before it hit .0075 anyways

As for today price action bounced off the ascending trendline up 4% or so on low volume. Nothing too exciting.

Good luck to everyone holding.

-fousc