gattes12, first off, let me just clarify that I don't actually "know" that this thing will ever recover in the way people want it to recover (i.e. back to 2 cents or above). In fact, I have previously stated that this company doesn't have much time left to turn the corner. I've also mentioned my frustration with management on several occasions, especially in regards to advertising and marketing.. (they have none). But I still see some opportunity here and still think it is possible for the ship to be turned around.
Although this method of funding is very destructive to share price and share holder value, one must see past this and observe the fact that they have no debt. Unlike more conventional companies that end up owing banks for years, GZ will be debt free once subs reach the break even mark. That is when the ship turns around. You see, once they break even due to sub revenue, there will no longer be a need for GGI.. they will be cash flow positive. Without GGI, there will no longer be downward pressure. And once the Q reports start showing the company is getting close to break even, I would expect people to really start buying the stock again. If GZ doesn't do anything stupid at this point, then shareholders will start making money again. Wouldn't you want to own a debt free cash cow?
Of course, JF doesn't know WTF he's doing, so who knows if this will ever happen. What I do know is that sub count continues to climb, even if it is at a slow rate. If they can get around 85K subs while maintaining the current expense rate, then shareholders will do just fine.
