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.
Hrm. :)
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.
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? :)
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.