After Closing Bell Seeking Alpha " ZNGA IS UNDERVALUED " ////// link //////
Seeking Alpha 12/6/12 4:02 P.M. EDT By: Christopher Grosvenor, CMT
ARTICLE " ZYNGA IS UNDERVALUED"
In other words, shares of Zynga appear to be very cheap. Current assets is roughly three times current liabilities and total assets is roughly three times total liabilities. Current asset is about $1.5B and total assets is about $2.6B.
Earnings are high quality; in other words, cash flow from operations is greater than net income. Cash flow from operations in the first nine month of 2012 was $176M. The firm is raising additional cash from equity investors.
agree. ZNGA cash is almost $2, book value $2.38. Business is not bleeding money.
Basically if you acquire the company at today's market cap, you get the business for free.
$4-$5 is reasonable in January 2013