Of interest!
By: Hammyabeer
06 Dec 2005, 04:59 AM EST
Msg. 1186 of 1187
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GZFX - Proof is in the NUMBERS.
First of all the national rollout is happening whether you like it or not. 10 more stores added to pilot today. This was confirmed by calling these stores. They wouldn't add 10 more stores if it wasn't going well, as planned; and they wouldnt add 10 more stores if they weren't planning to keep rolling this promotion out. It's happening. It's a fact. Get used to it.
CHECK IT OUT:
within a year we have gzfx in 600 stores. Each store sells on avg ONLY 6 subs a week (ONE each DAY..lol) which is NOTHING - i expect MUCH higher numbers. But just say 6. that's 312 subs a year from each store. Thats 187k subscribers assuming all keep the service. But lets say 30k aren't happy and end the service after a month. So we have 157k subs. That's not including word of mouth or ANY other form of advertisement.. JUST From CC sales alone. BTW i think using these numbers is absurd b/c WORD OF MOUTH is going to be HUGE. Ok back to number crunching::: 157k x $12 (avg sub cost) = $1,884,000 x 12 months = $22.28MM with $4.71MM going to CC as commission which leaves $17.57MM gross profit (after commissions paid). Assume we spend a whopping 50% of that on acquisitions/inventory/mkting/overhead . That's $8,785,000 Net Income which puts us at earnings of $.00732/shr assuming the o/S is still 1.2B. At that time with an excellent P/E of 15 (and i hope i dont have to tell you that NFLX's, SIRI's, XMSR p/e is MUCH MUCH higher, if they even have one) Our share price would be $.1098/shr. That's a NINE BAGGER from here!!!! And these numbers are REDICULOUSLY conservative!! that price would make us a true VALUE stock with such a low p/e and such high growth. I would think a fairer p/e would be closer to 30-50 which would put the price of the stock in the .22-.36 range. Not even taking into consideration here the valid hype that will be surrounding us the whole ride up.
Ok for you NAYSAYERS...or idiots as i like to refer to them (j/k..i agree all sides including the concerns of a co. should be looked at).... lets pretend we end up with 2B shares (which i doubt).
That still puts us at .004393/shr earnings assuming the above CONSERVATIVE numbers from the CC stores alone. With a P/E of 15 we'd have a PPS of 6.59c which makes this a FIVE BAGGER. That's with a P/E of 15...COME ON GUYS ..we are talking VALUE STOCK HERE.. some of you flippers may not be familiar with that term: value stock. It's a whole different game when you get that status. With a p/e of 30-50...well you get the idea....
I'd like to REPEAT that the numbers used above are ULTRA CONSERVATIVE and as i see it WORSE CASE SCENARIO!!!!
Remember...compounded revs, compounded revs, compounded revs. Once we get a share of the market they aren't going anywhere fast...we just keep growing. And I LOVE the fact that JF and the boys are already thinking way ahead as far as technology and what is coming up in this high-tech media industry. Even talks of expanding into European market when time is right.
If people would just step back for a moment and understand the possibilities here ...make that probabilities...they might rethink their "investment" in this company. Personally i am invested in the company not the stock or the momentum. I don't want to make 20-50%. Even if i could do it several times. Maybe these schitzofrenic traders will never learn or maybe they will finally see what's going on when we hit 10c and rev's and subs numbers start increasing by leaps and bounds.
Guys..and gals....
The more time i spend thinking about my investment in GZFX the more comfortable i am in holding my shares for significant gains.
I fully expect .05-10 and think there is possibility of over a dollar in the next 3-4 years. I suppose i can wait that long to become a multimillionaire.
The online rental market is just beginning to take off. I guess with netflix and it's competitors there is an online rental subscriber base of roughly 4 million...maybe less. I would expect that number to quadruple in the next several years and GZFX will get a nice piece of that pie. As will the investors who own a chunk shares. I do not normally play penny stocks (subpenny - 50c stocks). In fact i despise most all of them. For the past several years i have not touched a company with a p/e of more than 20. And i still remain a firm believer in value. Yet here i am, very confident in holding these shares of Gameznflix. Circuit City will get this company out there and assuming JF makes sure the proper steps are taken to make subscribers happy in the service ( which from the sound of it...things are definitely headed in the right direction)....the rest should take care of itself...word travels fast in an expanding market. In time, GZFX will become a major competitor in this market. And we the shareholders will prosper because of it.
Livin
