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Not that I care all that much anymore, but can someone enlighten me and explain why the A/S is not effected by a R/S. I'm no expert on SEC rules and regulations, but I had always thought that an R/S had to apply to both the O/S and A/S. It hardly seems fair that they can simply do an R/S and start over as many times as they want. I also love how they conveniently paid themselves millions of post-R/S shares so they would have the majority voting power.
Does anyone understand why they would need to authorize an additional 100M shares when they have 25B A/S? What does this do for them? Am I missing something here?
It seems to me that they could continue with this trick for years to come as long as there are traders willing to buy and sell the stock. The only thing that would force JF to do something positive with the co. is if everyone stopped trading shares.. and that ain't gonna happen.
Let me help here.. take a look at the 3 mo. chart... now zoom out to 6 mo... now zoom out to 1 year... that's right, zoom out again to 2 years.. The trend is the same my friend... down, down, and down some more. These spikes don't last b/c they are mere opportunities for GGI to dump more shares. If GGI was out of the picture, then I would believe differently. Unfortunately, GGI will be around indefinitely.
0.0001.. then another 1000:1 R/S, ha ha.
No, that would be called good trading. Shorting is selling shares you don't own. They can't do that. Also note that they are limited to how much they can own, so this means they are limited on how much they could buy back. In any event, I highly doubt they would buy their shares back.
GGI doesn't short, they dilute. The end result is the same.
GGI and entities associated with GGI are not allowed to short this stock. It's part of the contract.
Amen to that.
BoricuaDave, glad you are seeing some return on this. Just be careful with this one and you'll be fine. Just don't wait too long before pulling the trigger.
I don't think anything special is really going on here.. same old story. I could speculate on some things that could make this different than previous spikes, but it would only be speculation. If you do some DD on the Q reports, you'll find that the co. has claimed break even by year end every year of their existance. They claim 50K subs is break-even, but based on their financials, it needs to be much higher than that. Next, look at their sub count and churn rate since this co. became gameznflix. The sub count doesn't grow at the rate necessary to reach break even any time soon. They have no advertising and marketing even though they have spent millions of our dollars on consultants. They refuse to do a true national ad campaign, which is the only thing that can create substantial and sustainable growth. Top it off with the GGI financing agreement and the story is complete. There are very few things that can fix this co. at this point.
I probably shouldn't be negative since I would love to see this thing sail up to .50+. I should be pumping this thing. But unlike JF, I don't wish to see more investors get squashed by this thing. This board has too many of those. Wait for the Q to show substantial sub growth before going long on this thing.
Okay, this is funny. Go look at getnit's profile and follow the links to the two boards he moderates. He basically posts a bunch of messages to himself. He's the only person on these two boards. Oh, and check out these stocks' performance since he started the boards.. tank tank tank. Yep, he knows how to pick them alright. Must do some great DD. LOL!
What are you freaking talking about. No one here is listening to you. You're a one man army. Where do you get off talking to people like you're the king of this board. And I've done plenty well for myself, thank you. Don't need your help one bit. You do realize that this board has already benched you, right?
Oh, and everyone on this board has heard the "if only you knew what was about to happen" BS before.
Why don't you explain to us how this POS is going to be profitable before GGI dilutes the heck out of it again? My guess is you don't even understand the financials of this company. Do you even know what the GGI deal is, why they have it, and how it works?
I'm done with you. Go away now.
I'm sorry, but how did YOU give us 2%. Unless you bought several million shares, I doubt you gave us anything... just another blip on the radar. Also, scroll up to the top of your little screen and read the name under moderator.
getnit, I think the problem here is that you are a newbie to a cast of many who have been here for a long time. So when a newbie shows up and pumps up this stock with info he gathered within the last few weeks (rather than the last few years), half of which is pure speculation or flat out wrong, it is difficult for the old timers to accept and respect said person. We'll see how you're doing in a few weeks. My guess is that once you take your profit off this run, you'll be outta here (another reason why there's a lack of respect).
Dude, you have NO idea who you're talking to. Wick has been here since the beginning. So you need to bark up some other tree. The majority of people on this board have been here for years and have done far more DD than you will ever do on this stock.
Agent, your last couple of posts seem to be pointed towards me, so here is my response.
Yes, I have a long position for 2 years that I held. This is in a "mad money" account. When I purchased the shares I decided to try something new and hold them for 5 years... mistake. I knew the risk, but figured what the heck (things looked bright for the co. at that time). It was a minimal amount of cash relatively speaking. Aside from that, I have another account for trading purposes. I have posted this info a few times in the past.
As for influencing others to hold.. I don't believe I have ever told anyone they should hold this thing for some fantasy outcome. I have suggested trading this thing though. I did believe the bottom was going to be at 0.0005 pre-R/S, but was obviously wrong (and have admitted to it). I also believed that if they had 85K subs by the end of this year that next year would be a good year.. but never expected this thing to go much higher than a penny (pre-R/S) for many many years. I posted my analysis multiple times and always said there were many variables and that everything had to go just right for this co. to do well. After the last 2 Q's, it is obvious they will never reach break-even.
getnit, btw, you do realize that those shares owned by JF and crew are issued shares off of JF's printing press.. right? IOW, they DIDN'T buy these shares.. so what do you think they plan on doing with them...hmmmmmm. These shares are provided as payment for services rendered. Seriously, have you followed this stock at all or did you just look at a few filings a week ago and decide to buy this thing.
Um, sorry, but I never short a stock that's less than $5. I've had a long position on this thing for 2 YEARS!!
Stick around awhile and you'll see the light. It took me a year and a half, but I figured it out. Oh, and I've done plenty of DD.. too much in fact.. but I haven't done much DD on this since June.. there's really no need to. Just peak at the financials and you'll see where this thing is going. They have failed in every possible way.
Let me ask you, don't you think it's convenient for the pps to be pushed upward just before announcing a BS PR.. hmmm, what a coincidence. Gosh, that's never happened before, lol.
laguna, agreed. I'm concerned a few people posting (getnit cough, cough) may be getting a bit too attached to this one.
Wow, you really don't have a clue. This is what JF does. He pumps with BS PR's so GGI can dump dump dump.. not short, but dump dump dump and increase the O/S. Btw, where do you get off telling people the O/S is maxed out.. that's just a lie. And even when they do max out, they'll just increase the A/S. THIS HAS BEEN THE GAME FOR YEARS!! So you need to go back and redo your DD.
If you didn't sell at 0.09, then you better soon before this thing is back at 0.026. I'm glad you're making money, but your posts are somewhat rude to those who understand the JF/GGI game and have been here since the beginning. This isn't the first spike we've seen and it won't be the last, but the end result is always the same.
Good luck my friend. And keep that rocket pointed towards the moon.
I'll probably stop by from time to time to see how things are going. Until my next visit...
Take care.
you probably shouldn't read these posts either, lol.
congrats. Good to see people making money off this thing. Just don't fall in love or become too greedy and you'll do just fine.
So how have you been wick? I'm surprised you're still around here. I'm only here b/c the recent run caught my attention. After all, I still have a small write off position to sell, lol.
I haven't paid much attention to this thing since I came back from vacation to find it at like 0.0003 (pre R/S of course). The whole R/S and "new direction" took me off guard. I wanted to sell my remaining position that first day at .30, but Amerisuck didn't convert my shares for 3 or 4 days so it was too late. I mean, it was obviously R/S so they could sell sell sell.
I cancelled my sub after they announced DVDs would no longer be a focus (I don't play games). My wife convinced me to try Blockbuster even though I can't stand them. Wow, what a difference.. the service is much better and their GUI is way better than GnF. Plus, we love the fact that we can take our movie back to the local BB store and get a free movie rental from the store AND a new rental in the mail.
Zanjabeel, count the number of newbies on this board.. that's who's buying this stock, lol.
Oh, we still have dignity.. my bad :) Scotch it is.
Hey itrade.. I must appologize for my posts a few months back. It seems you were "right" all along. I use quotes b/c your fuzzy math and reasoning is still fuzzy, but regardless, you were right that GGI would find a way to dump down to 0.0001 (and then some). I guess I owe you a beer or something.
Hey itrade.. I must appologize for my posts a few months back. It seems you were "right" all along. I use quotes b/c your fuzzy math and reasoning is still fuzzy, but regardless, you were right that GGI would find a way to dump down to 0.0001 (and then some). I guess I owe you a beer or something.
like a dyson, lol, never loses suction.
My guess, based on the volume since the R/S is that GGI already did its dumping down to a penny and JF now has enough cash to run the business for another month or two. It's his way of printing money if you will. I used to wonder who was buying and selling this POS back in the day, but after seeing this thing just tank and tank and tank, I don't really care anymore. We've seen spikes before.. they happen. The only way JF and GGI are going to turn off the paper press is if the co. starts to have POSITIVE CASHFLOW. Look at the Q reports and it is obvious they are nowhere close to breakeven. What was it.. 20K subs on the last Q... 3K LESS than the previous Q. So this thing can't keep going up cause the printing press will start again.. it always does. Nobody knew about GnF 2 years ago and nobody knows about it now. They already admitted they don't have the funds to do the national campaign Moroch recommended. So where would they get subs from.. thin air? Well, JF has been waiting for the sub fairy for a long time and it just ain't coming. There's too much history here and until the financials are better, this thing ain't going anywhere (IMHO). I gave up on this thing when it fell below 0.0005 pre-R/S. And yes, we hit 30 cents after the R/S.. so that's 0.0003 pre-R/S.. what's your point? Why do you think they did an R/S.. b/c we hit rock bottom at 0.0001 and needed some breathing room to draw more suckers in... now GGI can dump all the way back down to 0.0001 again. Pathetic. Oh, and dilution was already happening in May 2006. It started long before then. And I believe it was in Feb. or Mar of that year that they announced the 25B A/S (a.k.a. dilution), which is why it tanked from its highs following the CC announcement(s). Ever since then, this thing has tanked following just about every announcement, good or bad.
btw, take a look at the link wick posted earlier regarding short interest.
One last note, 6 months ago I had positive projections regarding this co.'s financials and sub count. The last couple of Q's have shreaded those projections and I no longer have a positive outlook for this co. 6 months ago, I was giving them less about a year to reach the necessary sub count for break even, which I predicted was around 85K subs. Even if JF has improved churn, reduced costs, and started growing the sub count again, it is unlikely they can reach breakeven before reaching bankruptcy.. that is, unless they authorize another 25B shares and more convertibles, lol.
The only thing this POS is good for is day trading.
getnit, I like your newbie enthusiasm for this stock, but I think you might be a little off on your short theory. This stock didn't plummet over the past couple of years because of short interest. Dillution is the key to this stock's decline, not short interest. Just check out the O/S vs. price history and it is all spelled out. You might make a quick buck on this weeks' behavior, but be ready to jump ship as soon as GGI starts cranking the share making machine again. The GGI/JF crew control this stock's destiny.
I had a theory on this stock once and it didn't pan out, so be careful.
Anselm, no chit sherlock. I've explained the conversion and warrant relationship many a times on this board. Do a search and you'll find them. So no need to explain it to me. The sentence: So whenever GZ needs cash, they knock on GGI and say, "could you please convert some shares for me, I'm broke (again)" was not to be taken quite literally. It was in lay man's terms. But note that the exercise of warrants and the conversion of stock are one and the same b/c both transactions must occur simultaneously and in "equivalent" amounts as your example demonstrates. But don't be fooled by the language, it is GZ who contols the cash flow despite the technical control of GGI.
Oh, btw, since we're nit picking.. "could you give me some money, i give you some additional warrants according to our agreement". Not quite. The warrants were given a long time ago, it is the exercise of these warrants that provides GZ with cash. So more correctly, "I need money, please exercise some warrants". In any event, GZ asks GGI for money, which causes the transaction to occur and results in the dilution of shares through the conversion.
Yes, GGI can convert at any time. But my argument has been that GGI is unlikely to convert more than what GZ needs converted (i.e. exercised warrants) at these price levels b/c it is increasingly more difficult for them to make a profit as the bid drops. Furthermore, if the buyers dry up then GZ and GGI are in a real bind since GGI can't push the price down further without loosing money. So the cash flow for GZ dries up as well, putting the business in jeopardy. GGI should be thanking those who pushed the price down to 0.0004 for them. That pretty much opened the flood gates for a little while.
I'm sure there are plenty of board members out there eager to say "told you so, GGI dumped at 0.0004 and so we're now trading at 0.0004". But, IMO, that isn't quite the way it played out. It saddens me to see this POS was unable to hold 0.0005 while I was on vacation, but people shouldn't believe GGI started the selling at 0.0004. IMO, GGI didn't start dumping until other players had established the 0.0004 range, which allowed GGI to make a profit at 0.0004.
The WHOLE purpose of this type of financing IS to be FINANCING FOR THE COMPANY. Yes, the wording is such that, technically, GGI is "in control". But the reality is that GGI is GZ's source of cash flow. So whenever GZ needs cash, they knock on GGI and say, "could you please convert some shares for me, I'm broke (again)". There is NO other reason for this financing structure except to do EXACTLY that. Ask any of the (knowledgeable) people on this board and they will agree that GZ HAS to have GGI convert to stay operational. I understand the convertible debenture better than most people on this board.. I have done my DD and have posted it many times over by now. And of course, I will use the IMO for all of this. You are close to understanding, but not quite. Good luck to you and talk to you next week.
Dude, you're awsome.. thanks for finding that for me!! Okay, now I really am going on vacation :)
I'm going on vacation.. don't let the pps go nowhere, lol.
Yes, I was thrown by this for awhile as well. The sub numbers last Q threw a pretty good sized wrench in my sub growth model. I've reworked it a bit and have drawn some conclusing regarding the sub numbers from 1Q.
Originally, I thought they just weren't getting people to sign up at a significant rate. But, in reality, they did a pretty nice job from Feb. through Mar. The reason the sub counts (avg. and final) were so low has to do with their churn rate. In order for the numbers to make sense, there must have been a significant post-holiday cancellation spree. As a result, the new subs couldn't keep up with the cancellations. However, this churn rate was better controlled the second half of the Q. In addition, there was a significant number of new subs during this period, which is the only reason we ended up with 23000 subs. What is really interesting is what happens if GZ can continue this sub growth while managing churn.
As always, this is all IMO.
I'm not convinced GGI can or would short in the way you have described (can you point me to something that states what they can and can't do given their relationship with GZ). There is high risk in shorting at these levels.
I also think you may have misunderstood me. I don't think they need a low pps.. in fact, I believe the opposite. I believe it is in their best interest for the pps to stay at or above 0.0005. Ideally, they'd love to see this thing sky rocket b/c they would make a ton of money off the conversion (i.e. conversion price would still be around 0.00055 for 17 to 20 trading days).
Another thing about what you believe GGI is doing.. IMO, GGI HAS to convert on at least a weekly basis. Why you ask? B/c GZ needs the conversion to keep running the business. They only keep around 250K cash at GZ, so all expenses are paid for by the conversion. Last Q, GZ needed about $1.2M from conversions. At the current price, this is equivalent to about 2.5B shares/qtr, or 42M shares/day!! Now, I would hope GZ is making more rev. by now, so this number may be reduced, but this definitely shows a need for constant dilution. This begs the question... if they can do the pps tricks you say they can do.. then why not do them already? Trading 5 to 10M shares in a day ain't gonna keep GZ in business. So this notion that GGI is sitting in waiting for their next conversion is hard to believe.
If you can understand the need for conversion and the rate at which they must convert, then you will have become a bit wiser.
It should also be noted that the average sub count last Q was 18,700. There's a reason to think about this number.. it may point to better sub projections.. I know that sounds crazy, but think about it and you might figure out what I'm talking about.
boug, mull over this quick and dirty analysis for awhile:
rev/sub is $9.901 per sub based on '06-10K
almost half of GZ rev (stated in 10K) comes from the sales of DVDs and Games (this is in addition to the 9.901/sub; gives us 17.03/sub total. Notice the last Q had 18,700 avg. subs and rev of about 954K. 18,700 * 3mo * 17.03 = 955K.. pretty darn accurate). Insignificant rev from other biz activities.
Operating expenses are 3M+/Q!!
Cost of rev is about half of the rev (i.e. 485K out of the 954K last Q)
So 50K * 17.03 * 3mo / 2 = 1.27M gross profit. Nowhere close to break even unless operating expenses are cut in half.
85K subs gets you closer.. 2.17M gross profit. I expect dep/amort to decrease significantly by then as well as some of the other costs. There are other factors as well and I am currently in the process of adjusting my analysis. I wouldn't be surprised if I bumped up the 85K to 100K.
Agreed.
I've thought about this as well, but I'm too greedy to work for free :). If I got a commission, I'd probably do it. I guess I wouldn't associate the "free work" given to JF as being paid for by my GZFX ROI. Maybe I should.
The volume weighted average has never been low enough for them to have a 0.0004 conversion price. The majority of shares sold durin those days were in the 0.0005 to 0.0006 range. The fact that you think they convert at an 18% discount off of 0.0004 indicates you don't understand the financing agreement.
GGI doesn't decide the conversion price, the volume weighted average for the prior day or the lowest 3 days in a 20 day period determines this number. This price determines what share price they can make money at. Currently, GGI makes money at 0.0005 and above.
You are correct, it only takes one day at 0.0004, but you still have to have a lot of volume at 0.0004. The key is the term volume weighted. Just hitting 0.0004 at some point during the day doesn't significantly change the volume weighted average for that day. Volume weighted average for a single day is based on the volume at each trading price during the day. It wouldn't make any sense to label it as volume weighted if it wasn't.
I have mentioned previously that there may be ways for GGI to manipulate the stock such that high volume occurs at the lower levels. I don't know all the legalities of what GGI can and can't do to manipulate the stock. Based on the trend for the past several weeks, I would say they are limited.