DALLAS, April 29, 2004 (PRIMEZONE) -- Wall Street Futures, a leading news source for small-cap investors, has given Gold Entertainment Group, Inc. (Pink Sheets:GEGP) its highest rating of "Strong Buy" on recent news that the company will launch its much-anticipated multi-level marketing (MLM) subsidiary next month. Wall Street Futures identified the home entertainment sector as a long-term growth industry last week and is now closely monitoring GEGP as a company that small cap investors may want to continue considering in this space.
This week, GEGP announced the addition of two MLM industry veterans to the company's management team, as well as plans to launch its wholly-owned subsidiary, Quality of Life Marketing, Inc., on May 10. Quality of Life will rent and sell consumer DVD and video game products through an independent network of distributors and an interactive Web portal. Its 5,000 DVD and video game titles are more than twice that of the traditional video store.
Francis Fytton, Gold Entertainment CEO, indicated that the company already has engaged dozens of experienced distributors who have reserved their positions in advance of the launch.
The success of Netflix (Nasdaq:NFLX) has proven the efficacy of the online sales and rental model for the home entertainment industry and it has dulled the outlook for traditional DVD and video rental companies like Viacom (NYSE:VIA), Blockbuster (NYSE:BBI), and Hollywood Entertainment, each of which carries significant real estate burdens. Wall Street Futures believes that Netflix's decision not to enter the video game market creates an opportunity for another player to establish itself as the one-stop resource for all DVD and video game products.
Wall Street Futures also believes the MLM model will help GEGP reduce its marketing costs significantly, suggesting greater returns for the company's shareholders. GEGP shares began trading two weeks ago at $0.50; the current share price under $0.45 should attract many investors looking for leverage in this space.
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