Certainly, it should have come as no surprise that ZNGA had a very flawed revenue model from the get go, with 90% of the audience playing silly games for free. Each of these infantile pursuits, while costly to produce, had a shelf life not much exceeding that of an average loaf of Wonder Bread. There were also the very unwise acquisitions, throwing huge amounts of shareholder money at more flash in the pans. What I find most interesting is how seldom the traditional games--Farmville and such--are now mentioned on the board here. That wasn't the case just a few brief months ago. Obviously, the longs realize that the only hope for this sorry outfit rests in legal online gambling, and they are absolutely correct in this perception. True, the essence of the online gambling model is not a complex one if we can ignore regulation, and the profit potential might be huge. However, we cannot ignore regulation, and it is a bureaucratic/accounting nightmare when one considers all the government entities who will require payola and must sign off on the dotted line. I can only refer back to my previous argument that government itself will be quite adept at handling these modern gambling halls. They are already doing so. Who better can handle massive regulation than the very people who wrote the rules? The impulse to eliminate the middleman will be substantial, as I cannot name many governments which are not currently in severe financial crisis. Some of the work might be subcontracted, but then the big profits fade away. If one considers the course our nation has adopted, increasingly government is the economy, especially when one looks at the alarming numbers of our citizens who receive some form of direct financial assistance from big government.
On an unrelated topic, tomorrow is amateur night in the clubs, bars, and restaurants. I always had an extreme distaste for that eve and generally stayed home. I can only celebrate with the seasoned pros, and if their livers are pickled a bit, so much the better. These common folks simply don't grasp the true power of alcohol, "cunning and baffling" as the text says. If they are lucky enough to make it home in one piece, they say, "I won't do that again," and they generally don't for at least many months. They never really learned the subtle qualities of a long term relationship with John Barleycorn. Theirs was more of a one night stand with a cheap date, and once the sex is over, they simply saunter back home, none worse for the wear.
Summary: 1. ZNGA remains in trouble. Sell. 2. Stay home and be safe tomorrow night. 3. Tell your kids something nice on the last day of the year. 4. Forget New Years Resolutions--meaningless. 5. Walk it, don't talk it.