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i honestly have no idea what i'm doing: the stock market
dave-splits
soopageek
ast year when I quit working as a company driver and went into business for myself, I cashed out my 401k rather than roll it into an IRA or other retirement solution. At the time, the cash-on-hand was more important to me as a financial fallback while I got my feet wet as an owner/operator and to finance the odds and ends necessary to setup house in Frankfort when welfy moved from Pennsylvania.

I decided though that I would take $1,000 and invest it in a speculative manner, on something risky but with potential. Someone on my friends list at the time made me aware of the Netflix competitor GamesNFlix (ticker: GZFX). Interestingly, the company was based in Franklin, Kentucky. I took a look at their SEC filings and it looked like they ran a fairly tight ship. The odds of any company wrangling Netflix's domination of the online rental sector are slim, but I figured what the hell. The stock price was $.007 at the time, so I was able to grab 120,000 shares for $800. In the past year, the stock has tanked rather spectacularly. It's currently worth $.0004/share. In other words, my $800 investment is currently worth $48. While the company has managed to consistently increase subscribers and revenue, they've yet to make a profit.

A company called SuperVision Entertainment (ticker: SVET) began sending letters to the Board of Directors of GamezNFlix in April and May of this year with interest in purchasing the company. SuperVision wants to acquire GZFX as a wholly-owned subsidiary for the purpose of using it to launch a World Professional Gaming League with an international television show to promote it. The prospectus for their idea is promising; if they achieve their membership goals it has the potential of generating $150-200 million in annual revenue for GZFX.

The Board rejected the buy-out, and further, made no mention of the interest to their stockholders. SuperVision is therefore planning a hostile takeover, seeking to acquire enough voting proxy of GZFX shareholders to oust current management. On 5/24/2007, GZFX quietly filed an SEC report stating that Board of Directors president David Gallant had resigned and 5 days later, SuperVision publicly announced their hostile take-over intentions via news release.

What does this all mean? It might mean nothing. What I do know is that SVET is currently worth $0.45/share and has been as high as $2 in the past 52 weeks. If GZFX strengthened to at least that, my stocks would be worth $54,000. Going into full dream mode, if the professional gaming league was wildly successful and stock prices sky-rocketed to say, $10 per share, I'd be a millionaire.

I'm certainly no stock expert and this is all unproven, risky, and speculative stuff. But there seems to be a lot going on behind the scenes here that could pan out. If you have some assets/income you can speculate with, you can pick-up 100,000 shares of GZFX for $40 at it's current market value. I opened my eTrade account with the $1,000 I originally planned to invest. There's still $160 in cash sitting there. After the trading fee, I was able to place a purchase order for another 365,000 shares tonight. It wasn't money I was using for anything else anyway, it was just sitting there doing nothing.
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Wow, that's awesome. I've got a few stocks in my portfolio that are like that; my AAPL shares are up over 800%. Now I wish I'd bought a few more back then... :)

Interesting. I might just buy a bit because I've got some extra money from a recent stock sale...just for shits and giggles.

Hrm. :)

It'd totally be for shits and giggles as GZFX is for all intents and purposes, on its last legs. They have enough cash to hang on for another year or two, but unless some miracle comes along, I don't see how they're going to be making a profit any time soon. Basically, you'll be investing in a dead company and there's no guarantee that the take-over will be successful. The BoD president resigning is a good sign, but you never know.

I dont even have anything to put forth to invest unfortunately. the only downsided to investing is the taxes you have to pay when you decide to sell any/all of your stock. To me that would suck, but I can see why.

Currently, the long term capital gains tax (for stock held over 12 months) is 15% or 5%, depending upon income.

so who's got the site with the minimum trade / account opening? i do not want to plunk down $500 or $1000 but if this is something i could gamble $100 on, i'd give it a go.

I honestly don't know much about other online brokerages. I went with eTrade because they seemed to be the biggest and most reputable and I just happened to be wanting to play around with the amount that was their minimum.

From a quick glance, it appears that zecco.com offers no minimum deposit to open an account and has cheap-to-zero commissions; sounds like a god-send for day traders. At any rate, it appears there are sites out there that can get you what you need without making a huge deposit.

i did a little searching around last night... it seems most people are much more fond of Scottrade as far as the mainstream trading engines go, but they do have a $500 minimum. Ameritrade doesn't seem to have a minimum if you deal in cash but maybe i'm just missing something. i'll have to look up this Zecco business, i've never heard of them before and it sounds a little frightening.

so as a stockholder, do you get to "lend your support" to the hostile takeover? it's honestly not clear to me how this is supposed to work. would your stock then automatically convert into SVET? are you sure about that? :)

The strategy which SVET is employing in the hostile take-over is to gain the support of enough current stock holders to apply pressure to GZFX's board of directors to accept the merger or risk losing their jobs and be replaced by new management who would be sympathetic to the acquisition.

I don't exactly what SVET's restructuring plans are. Their press release says they will send information to current shareholders who inquire at the e-mail address they provided. I've already emailed them, so hopefully I'll have it sometime soon. Personally, I don't want to be given SVET stock... they'd just trade them out for wahtever the current value is I would presume. My interest in this is having several hundred thousand shares of dirt cheap stock and the speculation that it might rise rapidly.

also, have you checked out Intrade? i ran into that last night too and that shit is fucking nuts. it's basically a current-events gambling pool that runs like the stock market to some extent. i figured you might be into it. :)

That's very interesting! I don't think I knew that you dabbled in stock. I'm really impressed. I've always toyed with the idea of saving a grand and speculating but I never could seem to get that liquid.

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