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Re: GOFH analysis after recent drop

ratu...@gmail.com

I am not as optimistic.  Over the past month, I sold all my GOFH stock
at a big loss - I'm down about 15K on this one, which I can only blame
on poor judgment on my part.

Stock is trading now in the $0.68-$0.72 - it's come a long way down.
No chance of listing on NASDAQ whatever.

Firm has no assets, high overhead, and an inadequate revenue plan
(banner ad revenue) given their high overhead costs for film
production.

They are eating through money like nobody's business and last quarter
their income was less than 1% of their expenses.  Even a huge increase
in revenue, this company is a loser.  It would be one thing if the
revenue and expense figures were close, but they are two full orders
of magnitude different.  That should be a big warning sign to anyone.

They are also going to have a very tough time raising any future
capital, given the low stock price and lack of revenue.  With full
ratchet antidilution in their prior agreement, they are not going to
be able to realistically make new offers for less than the $1.60/
share.  Given that the stock is trading below half of that value, I
don't see a snowball's chance in the Mohave Desert of that happening.
The analyst reports on this one also seem to be quite negative.

I think GOFH is headed for disaster.  Definitely not a value
investment! I will not be surprised if they turn up their belly and go
bankrupt within 2-3 years.  In fact, I will be surprised if they are
still around.