ZNGA has been on a long agonizing trajectory into pink sheet territory. As of this morning it is still absurdly valued at $2.5 billion. Alas, those days when it was valued greater than Alcoa are memories, but $2.5 B is still quite a pile of change.
Here's the math question: When there is a $.10 decline on a $2.30 stock with a market cap of $2.5 billion, how much capital was vaporized in a matter of hours? Yes, it's a big number. I always enjoyed math. Assuming we don't have Madoff style accounting (these things happen), numbers don't lie. They are completely objective. They just are.
"Truth is beauty and beauty truth. That is all there is, and all there is to know."
Here's a math question: Say one purchases 10k shares at $2.25 then another 10k at 2.55, what is the average? Take that average and subtract it from 4.02. Now take the difference and multiply by 20k. Now how many shares can one purchase with the profit only at $3.08. Once those shares are purchased what would the price have to reach before this shareholder loses $1.00?
How many hours (billed to shareholders, of course) does Mr. Pinus spend on a monthly basis consulting with lawyers? Civil culpability is much easier to prove in a court of law than criminal intent. Therein rests Boy Wonder's dilemma.