InCapta Inc (INCT)

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GZFX: A Solid Game Plan
Jan 03 2006 10:29:33 pm
Market Analysis by Lonny Rosenfeld

http://marketvibrations.com/index.php?subaction=showfull&id=1136348973&archive=&start_fr...

When you watch a DVD there are two ways to do this, either you buy the DVD or you rent the DVD. There are now also two ways to rent a movie, one can run into their closest Blockbuster (NYSE: BBI) or jump online and have the movie shipped home in a very speedy manner.

Why leave the house when you can just have your movies shipped to your mailbox? It seems that many people are catching onto this idea, one reason why companies such as Netflix (Nasdaq: NFLX) have been seeing recent success. It was only a matter of time before this same idea was applied to video games. Gamefly.com took the initiative and established a service built on the same ideas as Netflix. Gamefly.com until recently has enjoyed a lack of competition, but like with any great idea, there is always a second player in the game, with a goal to beat out the original player.

The new guy in town is a small company that goes by the name of GameZnFlix (OTCBB: GZFX.OB). Starting in November GameZnFlix and Circuit City (NYSE: CC) signed an agreement where Circuit City would promote GameZnFlix on a trial basis in a select number of its stores. This is not a bad accomplishment for a relatively unknown company to obtain. The fact that many OTC stocks tend to appear and disappear makes many investors nervous and because of this reason many people do not invest in these stocks.

GameZnFlix stands out from many other OTC stocks. Many of these OTC companies flood investors with all kinds of promising news and possible deals, but promise is the only thing that occurs. GameZnFlix has exceeded many of these companies by actually already getting the wheels in motion. The "trial partnership" with Circuit City will make more investors feel at ease when investing in this company. It remains to be seen how successful this partnership will be, but if the limited number of stores are reporting any type of success, expect Circuit City to offer this service in all of its stores. The potential is clearly there for success, but until GameZnFlix releases a statement on the early results of this partnership investors can only hope things are going well.

Taking a look at the chart below, many bullish events are occurring.

There have been numerous bounces off the increasing 50 DMA. Strong support appears to have been established at $.0127. It appears likely that the next run will test the $.015 resistance. If this $.015 resistance area is broken, there is very little in the way of resistance until $.02. The last rally in late November took shares to just below $.025, if the $.015 resistance is broken, expect another rally to occur with a higher high than the $.025 reached in November.

As always there is a high level of risk with any OTC stock. A statement from GameZnFlix regarding the success with Circuit City can either cause shares to triple in value in a single trading day or send shares back to the sub-penny level.

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