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Re: LmCliff post# 180293

Thursday, 06/22/2006 10:16:54 PM

Thursday, June 22, 2006 10:16:54 PM

Post# of 286611
I like to calculate fair value based on the industry leader. Whereas I think Netflix is currently overpriced, they can still be used as the gauge.

GZFX will never be an industry. Just isn't going to happen. Can they be a distant second, third, or fourth? Absolutely.

If you reduce GZFX outstanding shares to that of Netflix, you're looking at a current PPS of somewhere around .45 to .80 depending on how many shares are actually in float right now.

I can easily see the distant second, third, or fourth in the industry pulling a PPS in the $4-5 range (in Netflix dollars) and that calculates to a current PPS with our dilution of around .02-.03.

The problem with the dilution is that there always seems to be a buyer and a seller at every price point, so it's a tough row to hoe.

I'd do the math for you on what's above, but I've been drinking and I'm tired.