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hangdog

11/08/05 10:16 PM

#31751 RE: simplegreen #31698

The new adverstisement on CC webpage, looks good to me. It is nice to see it offered from the home page and the bright NEW!.

With each tick, tick, tick of the clock we should be seeing a flow of traffic to GZ's website. These visits should drive the subscriber base for GZ. I looked at the competiion. I saw that NetFlix is expected to go from 3.5 m to 4.0 m subscribers in the 4th quarter of 2005.

I was looking back and saw that GZ was only 3,000 subscribers in June 2005 according to the 10QSB filed in August. With this new marketing push with CSTV and CC, GZ should be able to show a significant growth in customers. Even if the growth expected by NetFlix over the November/December time frame is just 1/10th that of NetFlix then that would be a subscriber base of around 50,000 by early January. This would be expectional considering where the company stood in June.

Based on rough math the income from one month's worth of subscriptions would be double the entire revenue generated in the Apr-June 2005 quarter which was $243,000. It looks to me that as subscriber volume increase then in the net rate of return should improve as the base administrative expenses become a smaller portion of overall expenses.

Doing some rough calculations, I would gather that if the company reached around 150,000 to 200,000 monthly subscribers then the company would show a net profit overall. 50,000 subscribers in the quarter would be equivalent to adding one new subscriber about every 3 minutes. So 150,000 new subscribers this quarter would require one to be added every minute.

So if you want to salivate think about the following: If GZ adds at a rate anything above 50,000 new subscribers in a quarter, then we may be in the green by the first quarter of 2006. That bodes well for shareholders.

Time will tell but to me it looks promising.

HangDog