To OTC Journal Members:
 

Family Room (OTC BB: FMLY) Surging As They Hit Variety

Shares of Family Room began a mid day surge yesterday, and are following through today as the company made this morning's Variety and was mentioned on ABC last night.

The Variety article revealed that Emmett Furla Productions (FMLY's Wholly Owned Subsidiary) had signed the high profile and recently maligned Justin Timberlake to one of the leading roles of Edison, which according to the article goes into production on March 5th.

Unless you are living in a media vacuum, you know Justin Timberlake has become major media fodder since the unfortunate accidental (yeah, right) Superbowl/Janet Jackson breast incident. I guess it was also an accident that Janet Jackson released her now single a few hours later. 

Regardless of the negative press Timberlake is currently receiving, he is a major media draw. He will be making his film debut in a starring role in the upcoming Family Room production of Edison.

Timberlake (2 time Grammy winner) now shares the lead role in Edison along with three other high profile names: LL Cool J, Morgan Freeman (Best Actor Academy Award Winner), and Kevin Spacey (Best Actor Academy Award Winner).

Timberlake's addition to the cast helps insure maximum box office exposure once the film is released. It will bring in a whole new demographic audience, and will no doubt dramatically enhance the pre release hype of the movie.

Once the film is out, box office receipts in excess of $40 million could end up yielding significant profits for Family Room. In the interim, Family Room will collect a nice production management fee, and have another opportunity for a big win for shareholders.

As you can see from the chart, shares of Family Room have tried to break through the $.16 level three times this year on pretty strong volume, only to be repelled each time.

There is very little insider activity, so the supply could only be coming from the $1 million in financing the company completed last year. The supply is finite, and therefore will eventually be absorbed.

The stock recently completed a nearly 50% retracement of this year's move off the bottom, and is now bouncing. If you've been buying the dips, and selling the rallies, you could have done quite well. However, that is a risky strategy because one of these days the stock will not dip, and go on to make new highs.

Family Room has no financings planned for this year as the company has more than enough business lined up to cover the corporate overhead and report its first profitable year if they execute on all their pending projects.

With a roughly fully diluted 40 million shares issued and out, the anemic $6 million market value offers great upside. One hit movie and its all over. 

Despite some impatience over the stock's inability to break out in the past, I'm still looking for $.25 this year, I just don't know exactly when. Maybe the fourth attempt will get the job done. Persistance breaks down resistance.

Here is a reprint of today's Variety Article for your review:
 

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