To OTC Journal Members:
 

Family Room (OTC BB: FMLY)- Gets Back in the Limelight and Back on Track

As you can see from this chart, Family Room Entertainment has been hammered this year. Investors had high hopes for the company, as their first two major theatrical releases hit the theaters in the fourth quarter of last year.

Half Past Dead, the thriller starring Steven Segal, was no surprise. This "B" movie was a minor box office win, and should produce some residual profits for wholly owned subsidiary Emmet/Furla Productions when it goes to video and premium channels.

The by far bigger disappointment was NARC, the thriller starring Ray Liotta and Jason Patric. This movie had lots of pre-release hype. Having won critical acclaim at the Sundance Film Fesitval, the likes of Dustin Hoffman, Tom Cruise, and Warren Beatty were heaping praise on the movie.

Most of Hollywood was looking for an Oscar Nomination for Ray Liotta, and critics everywhere thought the film would meet with considerable commercial success. Family Room, in possesion of 23.5% of the producer profits, was looking for its first big win.

The film met with very limited box office success, and no Oscar Nomination, much to the disappointment of shareholders. Apparently, despite the critical acclaim, movie going audiences and the Academy were not entertained by the gritty and violent nature of the film. Hence, a serious drubbing of the stock has taken place, and we believe current levels represent an outstanding opportunity for investors.
 

Bargain Hunters Take Note- Family Room is Far From Half Past Dead

Recently Family Room has made several announcements concerning new projects. A second Steven Segal thriller, Belly of the Beast, is currently filming in Thailand. Blind Horizon, starring Val Kilmer, has completed filming and is in the editing process.

Family Room also recently announced a new direct marketing initiative. They will begin marketing, through 90 second commercials nationwide, a DVD series of classic programming. The first series of DVD's will feature the comic performances of Red Skelton. Commercials will begin airing at the end of this month.

News of another new project in the pipeline became public knowledge today. Family Room and National Lampoon today announced they will be partnering to develop a new movie, tenatively entitled "Back To College".

Based on the personal experiences of coproducers Randall Emmett and George Furla, who posed as college transfer students at Auburn University in the Fall of 1999, the film is expected to be a hybrid of Rodney Dangerfield's comedy "Back To School", and National Lampoon's commercially successful "Animal House".
 

Conclusion

As we stated in our original Trading Alert on Family Room, this company has the upside of a biotech stock without the enormous capital requirements and the downside risk.

One big commercial success can yield substantial profits. Sticking to the biotech metaphor, one might say their first big drug, in the form of the movie NARC, failed in Stage III clinical trials.

However, the company has many more opportunities for huge home runs. However, unlike a biotech company, Family Room doesn't need massive amounts of capital to achieve commercial success. Their projects are financed by others.

The stock is absurdly oversold at current levels. With only 20 million shares issued and outstanding, the closing market value of the entire company was only about $1.7 million based on today's closing price.

The stock is certainly entitled to bounce back into the $.15 range on the strength of the new direct marketing program and the Back To College project with National Lampoon. In addition, there are several more major projects in the works, which we will report as they become public information.

Bottom line- take advantage of the short term weakness in the stock. A roll of the dice at $.085 seems relatively risk free as compared to past pricing of the stock. Lots of upside potential and limited downdside risk.

SwingWire.com also has a lucrative incentive model for experienced investors and traders who consistently outperform the market. Share market ideas with other like-minded investors, establish a proven track record, provide insightful commentary, attract followers and ultimately become one of the Internet's highest paid and most sought after CyberAnalysts! 

Click here to receive your FREE 30-Day Trial Membership with no further obligation. Sign Up Today! 
 

Click Here to view our compensation on every company we have ever covered, or visit the following web address:  http://www.otcjournal.com/disclaimer.html for our full profiles and http://www.otcjournal.com/trading-alerts/disclaimer.html for Trading Alerts.

MarketByte LLC has been paid a fee of $25,000 by Family Room Entertainment for coverage through January 31, 2003. An additional 150,000 free trading shares have been paid by a third party. On February 1, 2003, Family Room extended its contract with MarketByte LLC for coverage through the remainder of 2003 for a fee of $30,000 in cash and 300,000 shares of restricted stock.  Please review our policy on selling shares found in the Mission Statement on our home page.

All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

The editor, members of the editor's family, and/or entities with which they are affiliated, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication unless specifically disclosed in the newsletter.

The profiles, critiques, and other editorial content of the OTCjournal.com may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN  SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN  CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at  http://www.sec.gov/consumer/cyberfr.htm. Disclaimer ID:$subst('Recip.userid') Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.