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ot: Tina, great post !
Emotional newbie investors tend to panic when in the red. It shines in all of their posts. They sit here all day and rush to the scene of anything that may not be a pump.
The same traders are 100% in with GZFX. They hear only what they want to hear because too much is tied to one position. Learning the hard way from 16 cents has been painful for these people.
Desperate posting to keep the pps up is a waste of time. GZFX and GG control the price and destiny for the board.
Greed will blind. Too many shares have taken the element of getting rich off GZFX away. JF created the flippers. It is the only way provent to make any money. Well, unless you get on the outrageous GZFZ payroll. LOL.
Being objective and rational is out of the question. The same people fear California falling into the ocean, killer bees, bird flu and watch Fox television 24-7, LOL.
Currently in for a trade ahead of the 10Q. Timing has been confirmed to work out for a trade. Recent information has assisted with the decision.
And imagine that, I hold shares and am willing to say the service is sub par. Most shareholders will only present the positive because they fear hurting the price. It is because a message board does not control the price. Both sides need to be addressed. Some longs just want to pump for a high price to exit. Just know what their motives are.
At least I post the up to date analysis. I will never become emotional with a stock. It is simply a trade based on fundamental and technical UP TO DATE information. This is important because people always post my old information.
Being that I sold near 2 cents, then .012's-.013's second time around, free shares are a plus for a quick trade.
* this is the most up to date opinion based on the timing issue. Past posts stand and were current at that time. Remember, I will only trade GZFX. So CURRENT dd on news and timing play an important role in trading.
Posted by: big_money_insiders
In reply to: None Date:4/21/2006 1:37:06 PM
Post #of 156135
Always smart as a trader to look at both sides of the coin each and every day.
* Remember, my style is to trade GZFX and not ever hold it long. So my comments pertain to the price and not actually the company as a long term hold.
You know how I feel about the company and valuation formulas, so no need to beat that drum.
Speculative stocks trade on emotion and news. Without these factors present, they creep towards the technical valuation.
My past posts are full of reasons why we trade at this level.
A few things that point to a nice price rise before the 10Q.
- Even though fundamentally, CC means very little, the initial rollout may get some press. It should get Press. Hopefully JF can sell the story this time around.
- The fib retracement more than satisfied the chart for now
- Most that would sell have had plenty of chances after falling from high of .0209
- CC rollout will play into the emotions of traders and bring in some buying
- 1 cent is an emotional trading level, a nice base if can close above it
- So perhaps JF can get some news out to offset the 10Q
- The 10K selloff came as a result of being blindsided by 2 billion shares of dilution after JF said it was not happening. This time around, people expect low sub count and dilution. The key is most dilution will show after this Q, so may work well for emotional buying again. The shares will not be seen until the next Q because most were sold into and after CC rollout (after this 10Q),
So take the above as you wish. Just presenting both sides for the traders that have interest.
RD, another great post. The same pump posts are gladly accepted even if they are copied and pasted from the day before. Someone mentions a service problem and is crucified.
The pumpers jump on them citing that they must be crazy. Then the same people say that GZFX is perfect in their eyes. How can anybody not be getting "Perfect service" attitude. This turns away other posters from explaining their story.
Just listen up, that is all. Each negative experience trickles down to the price.
People need to realize that GZFX churn rate directly impacts the bottom line. This then hits the stock price.
Perhaps understanding churn can help us all to know why people cancel. Because most cancel without explaining why.
The loss of subs translates to more time to breakeven. And with what is forked out up front to CC, it hurts more to lose the CC subs. Churn is a major indicator of service.
We cancelled our service 2 months ago because popular titles usually had a wait. We had trouble returning 2 titles that GZFX failed to check back in. The problem was corresponding with the service people. They would e-mail that the issue was corrected, but then we would get a bill, even after service was cancelled ? This went on for months. The process could have been prevented. It solidified that becoming a member again is out of the question. And we told our friends to stay away because of the frustrating and slow service in addressing the issues.
If they had responded to the issue in a timely manner, then perhaps they could have avoided some churn. We then told others about the negative experience, so get it ? How would GZFX even know why we cancelled.
* The point. GZFX would have never known of our issue. The service people only communicated thru e-mail. The e-mails were not prompt to the questions that we had. We sent JF an e-mail about the problems and they finally were addressed. Too little too late. But without sending e-mails directly to JF, GZFX would not have known how irritated we were with the process.
The cost per sub with CC is much higher than the cost of GZFX bringing in a sub on their own. That said, the Cost Per Sub is even more important now. Churn rate needs to be addressed because GZFX cannot afford to lose subs that they pay cash for.
This absolutely affects the shareholders. Trickle down affect. And satisfied customers may also buy company stock, pushing up the price.
The company disconnect occurs thru subscribers as well as shareholders.
An OTC startup has to look be concerned with why people cancel. Not enough subs yet to overlook the issues. I bet the same reasons for cancelling occur time and time again.
As the company improves, so will the stock price. Subscribers can translate into shareholders. As the stock price rises, the story will get out much easier. But knowing why people cancel is very important. Most get away without knowing why.
GZFX must excel in the service arena to get ahead, imo.
Greg s, good point.
Longs should actually place more emphasis on the negative posts than the "Cloud 9 Syndrome". Smart companies have always listened to specific negative experiences. Statistics show that a negative experience spreads much more rapidly than a positive one. So listening and nipping the complaints can only help shareholders.
Perhaps addressing these issues in the masses could bring them to the surface to be corrected much faster.
Every company has issues. We all know that GZFX service and response could be much better.
So listen to those that take the time to write about their experience. If a common theme develops, then GZFX can certainly look into the matter.
Ignoring the negative experiences does not make the issue subside. Only a handful actually post. Consider them a voice for many that just cancel. The churn rate translates into a lower pps.
So if we listen and let GZFX know about legit issues, it can only improve the pps.
Blasting a poster prevents others from posting their experience. Let's all listen to each post. It can only help GZFX to single out what can be improved.
It hit .008's already after I called it (from .013's) and may return on the Q.
But some time is between now and the Q, get it ?
And once again up to JF with the timing. Perhaps he learned from poor execution of PR's in the past ??
All I can say for now.
Enjoy the weekend.
My past posts all stand. Read them carefully.
Have a great weekend.
Always smart as a trader to look at both sides of the coin each and every day.
* Remember, my style is to trade GZFX and not ever hold it long. So my comments pertain to the price and not actually the company as a long term hold.
You know how I feel about the company and valuation formulas, so no need to beat that drum.
Speculative stocks trade on emotion and news. Without these factors present, they creep towards the technical valuation.
My past posts are full of reasons why we trade at this level.
A few things that point to a nice price rise before the 10Q.
- Even though fundamentally, CC means very little, the initial rollout may get some press. It should get Press. Hopefully JF can sell the story this time around.
- The fib retracement more than satisfied the chart for now
- Most that would sell have had plenty of chances after falling from high of .0209
- CC rollout will play into the emotions of traders and bring in some buying
- 1 cent is an emotional trading level, a nice base if can close above it
- So perhaps JF can get some news out to offset the 10Q
- The 10K selloff came as a result of being blindsided by 2 billion shares of dilution after JF said it was not happening. This time around, people expect low sub count and dilution. The key is most dilution will show after this Q, so may work well for emotional buying again. The shares will not be seen until the next Q because most were sold into and after CC rollout (after this 10Q),
So take the above as you wish. Just presenting both sides for the traders that have interest.
Just picked up some CNXT shares to sell into earnings next Thursday.
Made 13 % earlier in the week and was patient for a Red day to get back in.
This is a popular trading stock. I am expecting a move at some point into Thursday.
Good Luck.
OT: Friday Pop Quiz Question: if GZFX is such a "value", why only 4 million shares traded today ($ 37,600) ?
You would think buyers would be lining up. So where are the buyers that keep hyping this thing ? This is confusing me.
Pick 1, Either:
A. You bought much higher (99%) of shareholders and are all out of cash averaging down from 16 cents; Realize the same people will sell on any news pop to get out.
B. Want to sell out and are pumping only to sell per the PM's I get
C. Waiting for the Q to be filed
D. Realize there are billions of shares, low subs and that GZFX cash comes from them selling shares to market and not the actual business plan.
Please answer: Where are all the buyers to back up this hype each day?
Got back into HMSC this week. It can be a nice trade on any news.
Good Luck.
Re: .008's remain a lock (without major news). Wait until you see the Quarterly report, then come find me.
Enjoy waiting for that to hit the wire.
Tell me, what can possibly be positive about the Q ? Extremely low subs, increased outstanding shares, deficit spending, let's see, what else ?
Frankie, You are absolutely correct. When will they stop selling shares to market for cash ?? Any ideas when enough is enough for these guys ?
-------------------------------------------------
Posted by: frankie_fillet
In reply to: Stocksquire who wrote msg# 154812 Date:4/20/2006 4:13:37 PM
Post #of 154855
so you can see when and how fast the share count is increasing ... easy to blame traders for the depressed share price but if there is demand then holders will sell for a higher price if folks want them. The rub comes when management sidesteps the market offering new shares. thus increasing supply and lowering price even during high demand...
OVERSUPPLY... that is why oversold is not stopping the decline.
real
Excellent point Frankie. They sure seem to hide alot of information. Intersting that they have so much to hide.
Many long time shareholders sold after JF told them no more dilution and then dumped 2 billion more into the float last quarter.
The smart OTC's embrace shareholders with update letters and open information on goals and current objectives.
Sure, they cannot tell all. But some things are kept private for no reason whatsoever.
Much of the selloff occurs as a result of distrust imo.
It will take many quarters to get some trust back, if ever.
This could have been prevented. This is an OTC, JF, not Microsoft.
Investors are catching on. It is the same mentality as party ticket voters that defend the President regardless. Many are now upset at the GOP, but it took alot of time to figure it all out imo.
It is all there on a quick internet search, do you not know this ? Amazing that people will throw money at a stock without researching the CEO and President first.
It will reinforce why Flipping is the only option here.
Please research Chip and JF before replying. Same game, different company imo.
** Do this, investwize and others, name 5 things you know about JF and Chip outside of GZFX.
You up to the challenge?
Excellent post Legal, you get it.
JF, Chip and GZFX decisions created the price, not the MM's or a message board.
Posted by: legalegaltx
In reply to: stockhog who wrote msg# 154616 Date:4/20/2006 11:10:34 AM
Post #of 154689
show me a post where i encourage people to sell? BMI or any "one poster" for that matter, has no control over the PPS. that was my point. if he can get some one to buy or sell based on his posts, then they were people unsure or their investment in the first place, or are reconsidering their choices based on something he posted. people are going to read his posts and agree with him ( which is their right) or disagree with him. if they buy or sell on his posts, that is their choice and their money to do with as they please.
ot: Nice post, you are correct. Yeah, 1 guy controls 4 Billion Shares, sure. Whoever believes this should not be trading.
Question: Pump posts greatly outnumber other posts. So you would think the price would be manipulated up ! This kills the theory.
Easier to blame a message board or Market makers than face the truth.
Check into the history of your President and CEO before defending them. Or ask past shareholders.
Your CEO has sold billions of company shares for cash. PERIOD. They do not bring in much actual business revenue. Why is this so hard to figure out. Speculation inflation is already built in. Market cap is out of control.
GZFX is operating on Credit. The shareholders are funding this company that should have folded last year.
Market up 100 points, Nasdaq up, GZFX down.all imo.
OT RE: It is well documented that I bought .007's and sold near 2 cents. Actually stepped up and posted my positions during that time.
Flipped it many times on the run as smart money knew JF would dump shares on any rally.
** I continue to post here when replies like this come to the board.
In fact, I was called a "liar" about:
- 10 K prediction (months early to the day)
- Billions of shares Authorized (warned day before)
- Said JF may Reverse CC news and Billions of shares coming (he did it)
- Told you sub penny from .013's, and we sit at .008's.
Listen up if you wish, or place me on ignore. But do not reply with incorrect information about my past. This hurts the board.
Unknown_factor sends me PM's each week asking where the best flip points may be ! Want them posted here, Unknown ? The board sure would be shocked. Quit asking for advice on where to sell. Pumping is not getting you a better exit point.
OT: Is that "LORD BMI" or lord, BMI. LOL.
Good morning to you too ! Such a great day. Did you all have beautiful Easter breaks ?
Guess the .008's were a lock, but so soon !!???
The price falling certainly speaks for itself.
Just hit the .008's. thought selling was gone ?? Interesting. Maybe listen next time, take the bliners off. Price is headed down. You must not value your money.
Or are the MM's and message boards still manipulation the undervalued price. ha-ha !!
That is the reason I have been away trading other stocks.
I spend 2 minutes on GZFX each day. Only the replies to my posts keep me here longer.
Hey, anybody do their homework??
- Did you actually do some Due Diligence on the shady past of your CEO and President. Disturbing is an understatement. They are not new to this game. History is repeating before your eyes. Better look into it, imo.
Many said the same thing at 16,15,14,10,8,3,2,1 and now below a penny. It has fallen 60% since the last time you said that.
Trust the charts until news. You really think around 9,000 subs is going to help the price ?? What in this Q will keep the price up ?
The question is how far it will fall on the Q that can come at any time. This is also why .008's are a lock without news.
Updated charts currently show a pause and then .0086, then MA .0083 direction. Then how low on the Q ? imho.
This company is so far off from breakeven. How much more cash will they need before that time is the question.
Chart showing the .008 range is a lock without major news.
Still would not touch this until after the Quarterly filing.
Added NMKT yesterday 38 cents 200MA held and we should move very well into earnings.
Many are on the sidelines ready for an entry. And a large majority bought 50% higher and will average down.
I like NMKT to move from these levels.
Good Luck !
Actually, JF and Chip have been creating a "bad feeling" for longs. Perhaps, they should be removed.
Keep Stockbum 42, he does not take a 200K salary plus incentives & consulting fees. I like the guy, he stays.
Time to ask management what is going on here. Quit blaming the MM's, board posters, conspiracy theory, etc. Been telling you this for months.
Kind of like party ticket voters, TAKE THE BLINDERS OFF ! You do not know these people. Take the emotion out of your trade.
Look to the only people profiting at this time, GZFX management and GG from shorting per the Agreement clause. Another JF and Chip rookie blunder.
Can you believe they allow Golden Gate to SHORT GZFX along with Berlin traders !! This is a major issue that is never addressed.
The true question for the board:
What grown businessman goes by "Chip"????????????? This is key. Please answer this important question.
------------------------------------------------------
Posted by: retired56sc
In reply to: stockbum42 who wrote msg# 153771 Date:4/18/2006 8:58:45 PM
Post #of 153779
Moderators: Would one of you PLEASE get stockbum42 off of this board? He is a real nuisance and is creating bad feeling here.
True, JF & Chip probably gave themselves raises today !
They already have 15 % automatic raises built in each year. So stock price means very little to them. They make money in many capacities with GZFX.
They also increased the insider pot to 500 million shares recently !
Have you ever actually checked into the job history of the President & CEO ? Recommend that you learn a little about those running the company before spending real money as an "investor". JF is certainly no stranger to printing shares !
g) On September 25, 2005, the Company entered into an Employment Agreement with Mr. Fleming, its chief executive officer (see Exhibit 10.4). Under the terms of this agreement, the Company will pay Mr. Fleming an annual salary of $200,000 (with a 15% annual increase during the term of the agreement as established by the board of directors) and provide certain benefits as set forth in the agreement. In the event that the board of directors votes to remove Mr. Fleming from employment by the Company, he would receive certain compensation, including restricted shares of common stock of the Company.
President at 30 years old.
(h) On September 25, 2005, the Company also entered into an Employment Agreement with Mr. Gallent, its president (see Exhibit 10.5). Under the terms of this agreement, the Company will pay Mr. Gallent an annual salary of $175,000 (with a 15% annual increase during the term of the agreement as established by the board of directors) and provide certain benefits as set forth in the agreement. In the event that the board of directors votes to remove Mr. Gallent from employment by the Company, he would receive certain compensation, including restricted shares of common stock of the Company.imo.
What a sweet deal for these guys. As long as GZFX remains afloat, they make big money in total compensation packages.
Any idea how much they have scraped in "Consulting Fees"? JF was affiliated with some of the businesses that GZFX has paid.imo.
--------------------------------------------------
Posted by: stockbum42
In reply to: StockSpence who wrote msg# 153666 Date:4/18/2006 6:48:39 PM
Post #of 153718
what? this is penny trading. Im not gonna waste my time trying to personally raise the revenues of the comp. I own. You are wasting your time. Dont fall in love with the stock you own, thats one of the main rules .
Everyone got all huffy when i said to take your money to the latest boom. Its still booming and its not to late. I actually enjoyed myself for the first time today trading b/c i made money. i took a 20% hit on this and i dont take any losses below 20%, still own 130000 waiting long now just trying to break even. WAYYY to much dilution going on, dang shame.. but what did you expect, this company makes no money and the service sucks... no other way to pay for JF and chippie boys salarys.. I'd advise to sell, refuse to pay for JF's bloated salary. Maybe he'll panic and go on a pr frenzy.. oops, already tried that. Congrads, GZFX is the laughing stock of the otc. Prepare to be goofed on by everyone at IHUB. Im sure you can keep each other company pumpers...
Just my opinion.
OT: Good morning and thank you, Tina. LOL. Your sarcasm is appreciated !
Posted by: TruthfullyTina
In reply to: big_money_insiders who wrote msg# 153221 Date:4/18/2006 9:30:43 AM
Post #of 153345
Good Morning BMI sweetie,
lol I greet the room and get only 1 reply (thank you outlawbabe).
However, when you speak, the BOARD listens!
Bravo for being the most interesting and influentual board memeber =)
25,000 subs is reality in 2006. Check my formulas in past posts.
Quit pumping giant numbers that John does not back.
Call and ask him, 25,000 subs in 2006. Seriously, call and ask him about his expectations of CC. 1 sub per week is on the high end of their estimates from CC. That is why the deal means very little until completely rolled out.
But pumping out giant numbers only sets the pps up for a fall.
It is April and they have under 9,000 subs. Start being realistic about CC or the pps will continue to tank on the Q's because people expect so much more imo.
Jrod, your charts tell the story! Keep up the great work.
Do not fall into their trap. Take the high road. Only a couple of posters are ruining the entire board. And replying to them only advances their agenda of pumping so that they can Sell out at a higher price.
These pumpers are down big and will take cheap shots at your character. They are angry at themselves for such poor trade execution and using you as the punching bag.
Now that the assassins on the board have been Exposed, we all can talk GZFX, TA, etc. and get back to making money.
We know your charts are a tool to show what is coming.
And you are correct a majority of the time. Keep posting the charts, they are appreciated.
We called under a penny when it was over .012's. Here we are!! Great TA work, J-Rod.
Without major news, guess we evaluate again .0083 the .007's soon, Probably best to wait until the 10Q selloff though, imo.
If 50DMA .0096 falls, what is the next MA point ?
Some have .0097 as 50DMA on the charts. Which is correct ?
Some good chartists out there to share levels with.
What is the board concensus on resistance-support and Moving Averages ?
I see the .0086 coming soon without major news.
Legal, great point. Cheerleading as the price falls gets old. We all could certainly help each other out here.
Alot of great GZFX dd has been presented here. Running off those that can help has hurt the board.
* some think the board controls the price. Maybe if we all look at it as a place that does not affect price, then a rational forum for discussion may develop. Just a thought. I think we all want the same thing here, to make alot of money.
(insert Replies with personal attacks now...lol)
Many take " manipulator, liar, deception " as a personal attack. Perhaps look at the choice of verbage.
Great post Wick! We can get this board back to what it used to be.
Assassinations on character have no place here. A few posters are ruining the discussion for the entire board. The board asks that these people end this.
Keep the posting about GZFX and not the person. The clutter should then go away.
Truth comes out! Anyone holding 6 million shares does not want to hear the reason the pps is falling.
A repeated pump post each day should also be deleted. What is the difference ?
And the false accusations about other posters. " liar, manipulator, fraud, etc." Strong statements that provoke replies. No place for that here.
Consistency please.
Nice move today for GSHF ! Guess I got in at the right time.
Great gain within days.
I think everyone made some big money.
Stockbum, it is what has happened After this Q that people are worried most about. Explain the 25 billion filing days before CC announcement. Then a 1.3 billion share trading day followed by above average volume days.
Whether it is 3,4, whatever. It is in the Billions. Way too many shares regardless! Any realistic forecast shows that GZFX is correcting because it is Extremely overvalued. Run the numbers.
Another thing. $ 30.00 plus is cost per sub to CC. But the actual cost per sub average for GZFX is well over that figure.
Take all GZFX expenses and then figure how many subs they have. The total cost per sub is killing the price too. Adding subs is not helping because the profit % is so low. They spend a fortune on the Total cost per sub.
GZFX is not generating enough subs in relation to the millions of dollars that they spend. Money is heading in the wrong direction. That is why they sell shares on the open market for cash and also why GG is needed.
Not sure why shareholders never question JF and Chip. They have 15 % increases built in to the near $ 200,000.00 salaries! Plus other incentives and stock that shareholders pay for. They are on the Gravy Train and you know it!
Quit blaming a poster on a message board. Go directly to the source (GZFX) and start asking where your money is going ! It is your money, you deserve to know.
It is so much easier to attack a poster on a message board than face reality. imo.
Xan, Posting the same thing over and over again because it is a pump is accepted on the board ?
Think we heard it the first 6 times. Anything new to add ?
A double standard exists here for sure. You can post the same Exact Post several times because you moderate ?
Wick posts once and then people decide. Cramming the same post down our throats each day is simply not helping the board reach its goal of less clutter.
You are a Moderator. Set an example for others to follow.
Pumping is certainly not helping the price much. GZFX management needs to answer some tough questions.
Nothing that a board can do to help the price.
Thought the question asked for my opinion on adding another retail affiliate.
What is the appeal to answering SOLICITED QUESTIONS if I get bashed each time regardless of opinion ?
I was asked 4 times for a reply (waited because I knew the replies would divert to a personal basis). I replied with a disclaimer to not get personal and look, 3 BMI bashes already to a Solicited question).
The question:
Do you ask because you want my opinion, or do you ask to set me up for a bash?
GZFX cannot handle another affiliate, imo. Whether they get one is up to them. I have the service AND Netfix. GZFX has some service issues that many here already know about. All companies can improve.
The question is if 6,000 subs presents service problems, how can another major affiliate also be serviced?
* Keep the replies about GZFX and not me.
GZFX service has had serious trouble keeping up with just 6,000 subs.
** Unknown_factor, you keep asking for a reply so no personal attacks on this post.
How would they handle another major retailer at this time before the infrastructure is completely in place ?
Let's talk about it.
This is the reason that the CC rollout cannot happen faster. Netfix rolled out all at once in 2001 and it did not work.
Question, how would GZFX possibly handle another major retailer at this time ? They are far off from being able to service the business as is.
And the churn rate would be overwhelming with another major retailer.
Heading international also will not happen in 2006. They need to get their act together domestically first.
So we agree that they must have steady growth ? If so, how will they do this without Diluting the pps much further. 4 Billion shares is already too much.
Any thoughts on how they can grow slowly at 1,500-2,500 subs per month WITHOUT heading back to GG for more financing and/or selling billions on the open market for cash ?
The Dilution must continue in a big way, imo.
Any solutions (please consider Cost Per Sub when replying).
Xan, removing personal attacks would restore the integrity of I-Hub and the GZFX board.
Let's be consistent on what is deleted.
The tough GZFX questions should be allowed to be posted in this public forum.
All pump and attacks on character is what RB and other sites are for. I-Hub was where people flocked to for a balanced and cordial discussion on the stock at hand.
We can do this well again!
Let's talk only about GZFX. The other posts should be removed because they serve no purpose to the stock. And the replies clutter the board.
Sentinel, it is much higher than $ 30, Posted by: wickw50
In reply to: None Date:4/14/2006 10:37:55 PM
Post #of 152276
In doing what some consider DD, many on this board, in their enthusiasm, have approached sources from the position of "Hey, guess what I know and why don't you know it?", when in reality they should develop a trust with the contact. That is done by being humble, sincere and trustworthy. When the source knows they will not be called out on the public forum one can gain vast information. Here is an example....and no,...... you will never know who this individual is....
Q: How deep is the relationship between GZ and CC?
A: Highly unlikely that Phil Schoonover or any other senior executives have more than a cursory knowledge of who GamezNFlix is unless CC took an investment stake. It is possible that CC took an investment stake, but if so it would be fairly small and I find it highly unlikely. They are investing heavily in refreshing their real estate and updating some major systems. Most likely the games merchant put together the deal and had it approved by the entertainment senior merchant and that’s where it ended. Hundreds of deals like this are cut each year in many different product categories. GZFX is not nearly important enough to CC to be a strategic partner. This status is more reserved for companies like Microsoft, Apple, Sony, Samsung etc. They are likely on the lowest supplier tier within CC which means they’re just above probation.
Q: What do you think the terms are?
A: Many have speculated on the amount that CC is likely taking in each transaction. While I can’t say with first hand knowledge, it is most likely that CC is getting at least 2-3 months of each subscription. This would be consistent with most deals done like this with large retailers. Most retailers, Wal-Mart included, operate on an ~15-18% gross margin going out of the store. When it comes to service deals like this, retailers don’t have the desire or processes to deal with royalties or commissions, so I would expect CC to get 15-20% of the customer’s annual spend as margin upfront which means 2-3 months. **** So the $30 that is being posted is
(LIKELY ACCURATE OR EVEN ON THE LOW END). If CC got any less, then they weren’t doing their job for their stockholders.
Sentinel, the post was for those that will say, " look at all the cash they have ". The cash from selling of shares part needs to be taken out on all formulas.
Peorge, great post. You and Stockbum42 are absolutely correct, the cost per sub is way too high with all things considered.
Instead of coming back with a BMI bash, let's discuss Cost Per Sub. Very important. And many of the formulas posted here are not taking it into consideration.
Cost per sub is key and should be addressed on the board instead of diverting to the poster.
Just the percentage outlay of over $ 30 from GZFX on CC alone is a dream setup for CC. There is not any room for churn.
GZFX must get the cost per sub way down. It is killing any thought on revenue growth.
And the churn rate needs to be addressed. Losing a sub when the cash outlay is so high completely skews the growth model.
On the next Q, take a look at the actual business revenue (outside of selling shares for cash), total expenses and then divide this by the total number of subs.
They need to get a serious grip on this. If not, Peorge & Stockbum42 are correct, they must continue to go to GG for funding because cash is headed in the wrong direction, rapidly.
The cycle is a Toxic Deathspiral. Sure the company may move forward, but the price per share will get slaughtered. The more shares they sell for cash and/or GG converts for debentures, the more dilution takes place to the outstanding shares.
It is already so far out of control. Do you realize how many people it takes to buy up 4 billion plus shares ! No wonder JF has converted so many investors to flippers. imo.
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Posted by: stockbum42
In reply to: xanadu who wrote msg# 152247 Date:4/16/2006 6:20:41 PM
Post #of 152271
well, i think that the bottom line with GGI...
is that they will/are funding this CC roll-out by adding to the O/S to the tune of 5.8 billion when its said and done. GZFX loses money on a monthly basis. They have to fund this from somewhere. I think that many are worried at GZFX that the dilution will end up killing the pps so they put a safeguard their so GGI can add more shares to the O/S at every 25% decrease from .007. That way, GZFX always has cash, and if all else fails.. They do a R split at 28 bill O/S. Good thing they chose the date that it was .007... and not .015.......
so if it goes down to .005 I think that the pps is done for... and GZFX knows this and doesnt want it to happen. from .005 it goes to .001 and all of the A/S will be dumped into the O/S. that will be like the guillotine at that point.
I doubt it will go that low as long as long as they have encouraging PR's. Look for a lot of PR's to keep this pps afloat or the pps will absolutely get killed thru dilution.
I just worry that the mm's are looking at this adding 25% decrease and licking their chops. Just worried that its set up for the shorts to make a killing if they can force dilution. Probably a lot of people here that cant even understand that concept so.. anyway...
bottom line.. if the pps goes to .005... its over johnny
all in my opinion