Great question, Goldrush !

This is where is gets complicated. Companies like Golden Gate can hedge their position. Say they perform a strategy similiar to a 'Straddle' in Options trading.

Simplified Example: GG has some shares long and does not know whether or not CC will happen. They can hedge with a short position until news hits. At this time, they will get rid of one of the positions. Remember, the lower it falls, the more shares GG can convert. If it falls, they will also make money on the short along with converting new shares with an 18 % profit built in. It protects the built in profit. The formulas are complicated. These companies are very good at controlling a price.

For the most part, they do not anticipate news. They just sell shares at any price because they can only hold 9.9 % at any given time. They are already in the money, so dumping at any price gives a quick profit.

We want them out of the picture as soon as possible.

Being acquired is Not the short term news that we are expecting. This was an answer to a question saying to not rule it out down the line.

We are loaded up for the news coming any day now.

It depends on the terms of a deal. Shareholders would most likely be taken care per the discussions I have had.

Not sure of a time frame. Circuit City for instance, may take an interest, yet may want it run by a separate entity for legal purposes. Just like Coke and CCE with BRVO.

Don,

That is also a possibility.

You have to wonder what the newly authorized shares for insiders and others may be used for.

My personal belief is that GZFX will eventually be acquired.

cuanaic,

Per your message.

Here is what is currently happening, Golden Gate makes money in each direction. (long & short) The Agreement with GZFX allows for Golden Gate to short the position. Institutions can short pennies. See Cornell as an example. Golden Gate also can convert at an 18 % discount from .0075 price, selling those shares to open market. Thus they are hedged with the short position.

Golden Gate has an 18 % profit immediately built in, so they do not care what price it sells at. Similiar to PIPE financing. They love keeping the price in a manageable range. They can convert shares and be in the money immediately. Golden Gate can not hold more than 9.9 % of the company at any given time. Great deal for them to convert and immediately have an 18 % profit. It is a nice way for them to also manipulate the price. They know that the Circuit City decision would run GZFX way up. They made money on the recent fall in price. But they will not get caught holding a short into the Circuit City decision, imo. Too much risk per reward. Covering the short will push the price up.

A few things can happen to break the cycle.

A: GZFX can stop the process with cash. They will have to be profitable in order to not have to borrow and/or sell their own shares to market (as they did last qtr).

B: Important News will break it out of the range.

C: Golden Gate can run out of shares. When they are finished converting, GZFX will have an incredible run. See AMEP (September) for an example of the conversion ending.
http://finance.yahoo.com/q/bc?s=AMEP.OB&t=6m&l=on&z=m&q=l&c=

Our play is on monumental news, short covering (Golden Gate, Berlin, etc. and a Frenzy of buying) very soon.

Please do the homework to make a decision.

mathmanjc, this one is for you.

Yes, I am sitting in the background. All has been said in past posts. Patience, my friend. Trade the plan.

Set a timeline to hold. And do not hold more shares than make you comfortable. This way, your decisions will be intelligent and not emotional.

Only deviate from the plan if something drastic arrives that will change the price substantially. i.e. the 10k was coming.

Looking at gzfx all day every day will make anyone crazy. Each day can seem like a year. The company cannot issue news every day. And we had news late Friday and again yesterday. It is understood that major news is needed for the run up that we are expecting. But every little bit can snowball the run.

Soon, shorts will begin to cover and traders will return with a frenzy of buying the rumor of the CC deal. It will easily head over 1 cent Without any news, imo. The last time, it touched 2 cents and was headed to 3 cents before the afternoon delay. History shall repeat and you will know when the traders return.

In the big picture, you shall be rewarded before March 15th, imo. And that is nearly upon us.

Hang in there, imo. GZFX fever shall return in a matter of days-weeks. We fully expect some substantial news to kick it all off.

BMI

Pvc,

We are ready for a run into March. Everything has been said in the past posts for all to read.

In order to not repeat posts on the board, I am just sitting behind the scenes and occasionally reading.

If anything changes, I will certainly speak up.

Until then, it is Go Time for GZFX.

Have fun, a large run up is coming short term, imo.

Wrong, it could double on speculation of the Circuit City rollout alone. Add some news and short covering in the equation. GZFX could produce a big return within weeks.

Let's not get too greedy. A double within weeks is realistic, imo. That is a nice return in my book. Very possible.

Contact John and Chip and ask them to give the details of the European deal.

This purchase should have had a PR. It will be received well by the public, imo.

ceo@gameznflix.com

cgallent@gameznflix.com

The military deal announcement may happen soon. This would certainly help the price tremendously, imo.

It is all good.

I cannot comment as the details will come out soon enough.

Remember when John and management went to Germany and Europe.
It ties to many of the talks they had, imho.

This is more than just an inflated purchase.

* Nobody would pay more than the trading price UNLESS more was given to them in the deal.

Again, the opinion is that there is more tied to the purchase. And there are reason(s) that the 10K was filed early. Someone needed it to be rushed.

These actions certainly influenced our decision to load up on GZFX in the short term. Buying all we can here.

Always do your homework. Ask John and Chip to release the information on the International purchase. It is important news. It will only help the price, imo.

Private Placements have been given a 15-20% discount by management in the past.

This guy paid more than the open market value.

All I am saying is that you will be very pleased when you hear the details of this purchase. It will make sense.

And very pleased when you find out why the 10K was filed early, imho.

This is all carefully planned out.

The European Investor deserves more attention than people are giving. You see, he paid 3 cents when it was not trading at 3 cents. You paid the current market price.

Do not discount this guys purchase. It is key.
And may be tied to more than the purchase itself.

Expect more on this.

It all will tie into the European Investor that paid an inflated 3 cents per share. The news on this will explain alot. This is a key purchase for many reasons. This guy is very sharp. He did not throw away 3 million dollars recently.

As far as flipping is concerned, opinion is that it will be tough to time short term. If you can do it, more power to you.

You just never know when a stroy will hit the wire
GZFX is not one that you will enjoy chasing.
It can be very explosive.

The fact that news sometimes comes at the open, sometimes and lunch and Friday came near close, it is tough to flip for now.

Shorts will have to cover into March.

Expect some very high volume in the coming weeks as we head into March.

Go back in January to see how it was setting up.
You see, the delay to March 15th allowed some Big Money to immediately go short and not worry. They knew nothing would occur until we came closer to March.

And Big Money controls the price.

Well, March will be here shortly.

The short covering acts as a buy springing GZFX to the upside.
Retail investors will jump in and the bull run will be on.

The lid will not be held down much longer, imo.

Our money is on a positive interpretation in price (such as Friday).

Agent, we had a deal. Until I was wrong, you were to back off and listen. Of course make up your own mind. Bash people that do not tell you what is coming.

You want me to leave the board for good ? Be happy to as a board has nothing to do with the price.

Everything is always subject to interpretation. Some people will always find the negative in any press release. i.e. We were up close to 15% and people debated the porn issue all weekend. Some will not buy MO because it deals in tobacco.

But if you are interested in making money, GZFX gets our strongest buy opinion right now.

Truly do not feel it will be under a penny for much longer based on what is coming, imo.

And we plan to have GZFX make our year very soon. All I can say for now.

Friendlyfred, Best post I have read in a long time.

You sir, are a savvy trader. Getting in or out before a move is how to build substantial wealth. Pennies are for trading, imo. Getting caught on the wrong side can be costly. A 50% hit takes 100% to make it up. You always need to adjust with what is coming.

Have not followed EDVO. But seems to be holding the 50 dma.
Watch the volume for a breakout. If not, the trend has certainly remained a descending channel.

There has never been a better time to Buy GZFX with what is coming. We feel that it is Go Time based on the wave of positive press releases coming.

Always do the homework outside of a message board before deciding.

I was criticized for not replying to direct questions. Now I reply specifically when asked about a price and get criticized.

Give me some reasons why my posts are not valid and we can discuss it.

The short term news ahead is mainly all positive, imo.

Coupled with the Circuit City deal, website, military, more acquisitions, international expansion and shorts covering into the announcement, what is not to like at this time?

Do what works best for you after doing the homework.

We are all in at this time and will let you know if this changes.

You must not follow the board. Been through this 100 times.

We are longs. But if something negative is coming (10K) that can save from a 50% haircut, we will take it off the table and repurchase. Smart trading.

Those that listened now have 100% more shares to work with.

Read all the posts before commenting. Cluttering the board.

Optimism is sure running high for GZFX right now.

And this should snowball into March, imo.

We are locked and loaded for the run up in price.

It has a chance to double from here before we know the Circuit City news.

We like our odds to make alot of money heading into March.

Stay tuned. The positive chatter is certainly building !

2-3 cents is low with the Circuit City announcement and other news, imo. Depends on timing too.

Golden Gate and others are allowed to short GZFX.

The concensus is that covering will begin as we approach the March decision.

It happened the last time. GZFX was headed to 3 cents or more right before the delay to March on high volume. The Technicals were set for a giant move.

The shorts will cover soon because a partnership with Circuit City will bring a buying frenzy. They know this and need to cover and go long to make money. These people are smart money. They will not get caught short with such a monumental decision ahead.

We expect the covering to begin in advance of the decision date. It should help the price tremendously.

You soon will also see the reason(s) why the Annual 10K was filed early. It was requested to be rushed. All Positive.

The weeks ahead are truly exciting to own GZFX.

The porn will not be an issue. Relax, you will see an explanation soon. Not worth analyzing at this time.

Focus on what is devleoping in front of your eyes.

They acquired DVDAvenue for investory, subs and some knowledge.

It all is building steam for the Circuit City, etc. partnership(s) announcement(s), imo.

Updated: 03:15 AM EST
Netflix Presses Pause for Heavy DVD Renters
'Throttling' Practice Delays Shipments, Gives Preference to Infrequent Renters
By MICHAEL LIEDTKE, AP

SAN FRANCISCO (Feb. 11) - Manuel Villanueva realizes he has been getting a pretty good deal since he signed up for Netflix Inc.'s online DVD rental service 2 1/2 years ago, but he still feels shortchanged. That's because the $17.99 monthly fee that he pays to rent up to three DVDs at a time would amount to an even bigger bargain if the company didn't penalize him for returning his movies so quickly.


Carlos Osorio, AP
Netflix subscriber Manuel Villanueva typically receives about 13 movies per month -- down from the 18 to 22 DVDs he once received before being identified as a heavy renter.


Netflix typically sends about 13 movies per month to Villanueva's home in Warren, Mich. - down from the 18 to 22 DVDs he once received before the company's automated system identified him as a heavy renter and began delaying his shipments to protect its profits.

The same Netflix formula also shoves Villanueva to the back of the line for the most-wanted DVDs, so the service can send those popular flicks to new subscribers and infrequent renters.

The little-known practice, called "throttling" by critics, means Netflix customers who pay the same price for the same service are often treated differently, depending on their rental patterns.

"I wouldn't have a problem with it if they didn't advertise 'unlimited rentals,'" Villanueva said. "The fact is that they go out of their way to make sure you don't go over whatever secret limit they have set up for your account."

Los Gatos, Calif.-based Netflix didn't publicly acknowledge it differentiates among customers until revising its "terms of use" in January 2005 - four months after a San Francisco subscriber filed a class-action lawsuit alleging that the company had deceptively promised one-day delivery of most DVDs.

"In determining priority for shipping and inventory allocation, we give priority to those members who receive the fewest DVDs through our service," Netflix's revised policy now reads. The statement specifically warns that heavy renters are more likely to encounter shipping delays and less likely to immediately be sent their top choices.

Few customers have complained about this "fairness algorithm," according to Netflix CEO Reed Hastings.

"We have unbelievably high customer satisfaction ratings," Hastings said during a recent interview. "Most of our customers feel like Netflix is an incredible value."


Netflix


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Stock Quote: NFLX
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Talk About It: Company Buzz
Headlines: More NetFlix News


The service's rapid growth supports his thesis. Netflix added nearly 1.6 million customers last year, giving it 4.2 million subscribers through December. During the final three months of 2005, just 4 percent of its customers canceled the service, the lowest rate in the company's six-year history.

After collecting consumer opinions about the Web's 40 largest retailers last year, Ann Arbor, Mich., research firm ForeSeeResults rated Netflix as "the cream of the crop in customer satisfaction."

Once considered a passing fancy, Netflix has changed the way many households rent movies and spawned several copycats, including a mail service from Blockbuster Inc.

Netflix's most popular rental plan lets subscribers check out up to three DVDs at a time for $17.99 per month. After watching a movie, customers return the DVD in a postage-paid envelope. Netflix then sends out the next available DVD on the customer's online wish list.

Because everyone pays a flat fee, Netflix makes more money from customers who only watch four or five DVDs per month. Customers who quickly return their movies in order to get more erode the company's profit margin because each DVD sent out and returned costs 78 cents in postage alone.

Although Netflix consistently promoted its service as the DVD equivalent of an all-you-can eat smorgasbord, some heavy renters began to suspect they were being treated differently two or three years ago.

To prove the point, one customer even set up a Web site - http://www.dvd-rent-test.dreamhost.com - to show that the service listed different wait times for DVDs requested by subscribers living in the same household.

Netflix's throttling techniques have also prompted incensed customers to share their outrage in online forums such as http://www.hackingnetflix.com.

"Netflix isn't well within its rights to throttle users," complained a customer identified as "annoyed" in a posting on the site. "They say unlimited rentals. They are liars."

Hastings said the company has no specified limit on rentals, but "'unlimited' doesn't mean you should expect to get 10,000 a month."

In its terms of use, Netflix says most subscribers check out two to 11 DVDs per month.

Management has previously acknowledged to analysts that it risks losing money on a relatively small percentage of frequent renters. The risk has increased since Netflix reduced the price of its most popular subscription plan by $4 per month in 2004 and the U.S. Postal Service recently raised first-class mailing costs by 2 cents.

Netflix's approach has paid off so far. The company has been profitable in each of the past three years, a trend its management expects to continue in 2006 with projected earnings of at least $29 million on revenue of $960 million. Netflix's stock price has more than tripled since its 2002 initial public offering.

A September 2004 lawsuit cast a spotlight on the throttling issue. The complaint, filed by Frank Chavez on behalf of all Netflix subscribers before Jan. 15, 2005, said the company had developed a sophisticated formula to slow down DVD deliveries to frequent renters and ensure quicker shipments of the most popular movies to its infrequent - and most profitable - renters to keep them happy.

Netflix denied the allegations, but eventually revised its terms of use to acknowledge its different treatment of frequent renters.

Without acknowledging wrongdoing, the company agreed to provide a one-month rental upgrade and pay Chavez's attorneys $2.5 million, but the settlement sparked protests that prompted the two sides to reconsider. A hearing on a revised settlement proposal is scheduled for Feb. 22 in San Francisco Superior Court.

Netflix subscribers such as Nathaniel Irons didn't believe the company was purposely delaying some DVD shipments until he read the revised terms of use.

Irons, 28, of Seattle, has no plans to cancel his service because he figures he is still getting a good value from the eight movies he typically receives each month.

"My own personal experience has not been bad," he said, "but (the throttling) is certainly annoying when it happens."


02-11-06 03:35 EST

Cashfreeze, the comment is resented. Everything I have said has happened on both sides of the ball. What more can you ask for? That was not my e-mail. Not similiar to how I post at all.

Anyone know the exact terms of the deal? The cost to gzfx? Are they bringing over any management and/or employees from DVDAvenue ?

Why do they not release news via DOW JONES, REUTERS & THOMPSON FIRST CALL for example.

AmeriTrade clients do not see the news on the Live Streamer.

You have to look other places.

For instance, the live streamer can tell you news on a list of companies that you select. But GZFX does not have anything next to it. I called Ameritrade and they said it did not hit DJ, Reuters or TFC. But they saw it on Bloomberg and some others ?

Why do they not release it to all of the major avenues ?
I can see some releases not making it, but buying a company should hit all the wires.

Management needs to cover all the major wires moving forward.

Any thoughts ?

E-Mail John and Chip about it. ceo@gameznflix.com and cgallent@gameznflix.com.

They need to release news on all wires.

What news avenue are most of you using to get the press releases ?

More interest will generate as this wave continues.

And it should have saved you alot of money so what is the point? Condemn those that have been wrong.

Some people like Crashtheline can never be happy.

I told you when to buy, then when to sell and then most recently, when to BUY. All came true. So bother JJ, not BMI.

And do your own homework for a change.

Just added more at .008. A wave of positive news. Just beginning, imo.

PVC, everything is positive for now.

Just added more at .008. A wave of positive news. Just beginning, imo.

Not a chance, moving up into Circuit City deal.

Sub Penny is a gift for now.

Just the beginning of a wave of Positive news into March, imo.

Enjoy the ride !!

Smile...

Blue Sky, I cannot do PM's, but will post here for you. Or perhaps send an e-mail address.

Anticipation and news move the pennies.

Check the chart the last time it headed into the end of the pilot program.

GZFX would have been heading to 3 cents Before the announcement.
Do not expect any delays this time.

Get a seat for the ride ahead, imo.

It should run on Circuit City anticipation this month alone.
And the news will press it much higher, imo.

This will be fun !

Looking good, Wick! Ask .0074. Nice action this morning.

hmmmmmmmm.

Agent is bitter that he could own 100% more shares if he would have listened before the 50% drop. Oh well, some will never learn.

It is go time, imho. with or without Agent.

El Don, did you call, raise or fold ?

1.9 Million just went through at .0072 while typing.
All Buys.

Listen to Wick. He is trying to tell you all something.

This Wick guy is very good. He can be trusted. Check out his track record of success. Read all the posts.

Wick is very smart when it comes to GZFX.

And he knows John well.

It is officially, Go Time ! El Don is back.

See your raise and raise you 30 million.
And I am not bluffing, El Don.

Do your own dd on gzfx for a decision.