Saturday, October 22, 2005 10:16:09 AM
Investwise, to add to what you said...
I think the Baker & Taylor relationship is going to do more for GFZX than people imagine. Consider the following:
1. NFLX currently has a market cap of $1.4B, which is 216x the market cap of GZFX at $6.5M. If GZFX were to reach NFLX's market cap (sort of like SIRI caught up to XMSR), that would take the share price to $1.51.
2. Then consider the value driven by the things NFLX does NOT offer that GZFX WILL be able to offer through its Baker & Taylor relationship -- (1) games; (2) books; (3) books on disc; and (4) music.
3. Now look out a few years... On-demand services will surely eat into the movie rental business (of both NFLX and GZFX), but games for the Xbox, PS, etc., can't be downloaded through on-demand (at least not for a while, that I know of).
So in 2-3 years, GZFX will be A leader in the DVD movie rental business, but THE leader in games and audiobooks, with the games revenue stream being the key driver to the company's value.
I'm holding tight for the long haul.
Have a great weekend.
I think the Baker & Taylor relationship is going to do more for GFZX than people imagine. Consider the following:
1. NFLX currently has a market cap of $1.4B, which is 216x the market cap of GZFX at $6.5M. If GZFX were to reach NFLX's market cap (sort of like SIRI caught up to XMSR), that would take the share price to $1.51.
2. Then consider the value driven by the things NFLX does NOT offer that GZFX WILL be able to offer through its Baker & Taylor relationship -- (1) games; (2) books; (3) books on disc; and (4) music.
3. Now look out a few years... On-demand services will surely eat into the movie rental business (of both NFLX and GZFX), but games for the Xbox, PS, etc., can't be downloaded through on-demand (at least not for a while, that I know of).
So in 2-3 years, GZFX will be A leader in the DVD movie rental business, but THE leader in games and audiobooks, with the games revenue stream being the key driver to the company's value.
I'm holding tight for the long haul.
Have a great weekend.
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