Let's face it, this is a low margin business that GZFX has chosed to compete in. We won't know how the new CC subscriber costs really effect the bottom line until this quarter's results are made public, and more realistically maybe the 2nd or 3rd quarter results are in.
John's earlier remark that they could be very profitable with 15,000 subscribers will be proven to be incorrect. I'm not saying he was wrong at the time he said it, I'm just saying that the statement will not hold up with the CC deal in place, because the extra expenses will cut deeply into what (if any) profits they make.
Add in the new higher salaries for everyone, especially for those like the CFO, and the probable use (little by little, maybe 50,000,000 shares at a time) of the additional authorized shares to be used to pay those expenses at any time (with a dilutive effect on all of us), and it is hard not to see a downward spirial caused by burning the money faster than it is being earned by the operation of renting/selling dvd's and games.
I subscribed to GZFX because I was psyched for the company after I bought shares. BAD experience all the way around. I couldn't get a response from the head office to take care of my problems, and the web site was a total disaster addressing my "Issue", and I spent over 2 hours doing, redoing, and redoing again (on two different computers over 2 days time), explaining my issue in the text section, only to not have it ever get to the home office.
This CC deal was their big chance to increase subscriber numbers, but can they handle more subscribers (enough to break even), as well as the increased subscriber service that will be necessary because of the higher number of subscribers, that is the question.
I didn't write this before, because I didn't want to scare off anyone from buying. I'm out now, and just consider it a warning to those on the borderline.
The long timers, I'm sorry, but all that I can suggest is to take the money you have in this stock right now, and buy the stock of a proven performer. If you have 1,000,000 shares of GZFX you can buy 170 shares of OXY, and at the end of the year you'll be better off, I'm willing to bet you on this. Only time will tell if I'm right or wrong, but I won't be posting any more negative posts here (I think this is my first). I've suffered so much owning this stock, have come out making a decent profit, but this stock has driven me crazy and caused me some sleepless nights because I had more money in it than I ever should put in a penny stock! I apologize to those I'm upsetting by making these comments, but sometimes you just have to tell it like you feel it. Adios, and good luck to you all.
Steve Nix
AI
