* This company has been in business since 2007. more than 5 years in business
* Despite length of time in business they have lost more than $404 million as of year end 2011.
* Despite an explosion in revenue levels, management couldnt control its exponentially high expenses.
* If management cannot do a good job, what good is a company.
* AS of last quarter 2012, company lost more than $85 million due to same problem, management controling expenses.
* prediction, "the Ville" will cause revenues to spike much higher, but guess what, costs will explode too, as history repeats itself.
* Short positions are the highest i have EVER seen at 21.90% as of 6/29/12; via yahoo "key ratios".
* Conclusion- sell before you get burned just like the FB investors.
what the hell is "mainly due to the expense recognized for ZSUs, an increase of $34.7 million in headcount-related expenses, an increase of $6.5 million in facilities and other overhead support costs and an increase of $3.5 million in consulting costs." what the hell is ZSU?? and how is that a good thing? anytime expenses go up, its not a good thing, especially when you dont even know what ZSU means!
this company has been public for 7 months and you're advising people to sell at all time lows.
if your best friend had invested money in this in the 7s and 8s and 9s....would you tell them to sell now?
I think you are absolutely correct. I like your analysis. Any investor should take a stroll over to the Townsend Street headquarters where thousands of the best and brightest toil away. Just contemplate the overhead, keeping in mind that the majority of the game users play for free. Sorry, I don't need any virtual goods. This company has the capacity to bleed through capital at mach speed; like Facebook, their revenue model is questionable to say the least. It is a company, like FB again, of pure hype. I say this, though I covered my short on Friday. The sheep/manipulators can still drive this stock up. I couldn't argue with Friday's chart. It was a great ride from $14- and change to the basement. $3- is definitely possible, and ultimate demise. I just didn't like the risk factors. Sometimes you just cover too early. I'm on to shorting Facebook. I may revisit this rubbish at a later date. We will see Facebook trading at $14- and less. We are also in the midst of huge systemic market risk.
odonnellm66 you are so right! just because they gain a few million users doesnt mean that they will make any money! their prior games also had huge surges in users ...but then what? they lost more money since inception ..more than i have ever seen for a company. its all about controlling costs. your company can make a billion dollars but can you control yours costs to keep that money. in the case of ZNGA, hell no. its all about fundamentals people.
wow you care so much about your fellow investor. Its really nice to know there are good people like you in the world looking out for others and posting this on a MESSAGE BOARD.
thanks jean paul.