Gambling, Silly Games, ZNGA, Lack of Trust, and John Maynard Keynes
"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. Those to whom the system brings windfalls become the objects of hatred. The process of wealth-getting degenerates into a gamble and a lottery. There is no subtler, no surer means of overturning the basis of a society than to debauch the currency."
--John Maynard Keynes
While you participate in the gamble and lottery of ZNGA, it is best to understand the above statement. Though the U.S. dollar and interest rates do not yet reflect this, we are already there. The speed with which the psychological transition occurs, will startle almost all. Likely, there will be some sort of catalyst to start the process, but I cannot name it.
Currency wars are the major theme for 2013. Ignore at your peril. How does a fraudulent company with nothing of utility function in this scenario? Not good. The question in the next earnings report is not whether ZNGA posts a loss, but how much? It would not surprise me in the least if there is a subsequent downward revision. The market does not like to be confronted with truth all at once.
U defy basic math
withno 30% cut to FB post march 2013, real money game launches, monetization being 100+ times then virtual, cost cutting in place, stock buy back , mid core game launches( better monetization) , z cloud (0 dependence on amazon cloud ) , and all the infra and employee stock optin costs absorbed in 2012, how zynga will run loss is beyond a kinder garden student too.
People can do there math, I doubt they need your help:)
Wrong, the market is all about mass psychology, and it is currently at unprecedented levels. That in of itself should be cause for concern. When cash is trash, it might be a good idea to have some. The really smart traders are currently selling into strength, unwilling to chase the last few points. They let someone else have the final gasp, because in terms of risk assessment, it is not a worthwhile bet. The day of reckoning comes in February for ZNGA and the market as a whole. Meanwhile, the band plays on.
What you always have to remember debt to income ratio! Zynga has none, plenty of cash! If Zynga wanted to partner up with other just to make money they could afford to do so. You know why because they have no debt. So all the revenue that comes in is pure profit! The only reason they spent money is to expand to other revenue streams! The stock is low because they have over 700 million outstanding shares. Increasing the stock price is the easy part for wall street but sentiment and public opinion needs to be convinced that the stock deserves the price! Thats what we are waiting for! But there is no doubt that it will happen, the question is when! The president can't even control wall street or predict it you are very wise old man but even the old wise men combined could not predict a stock price! Because there would not be a stock price to predict when the old wise man went insane!