Over the years, I've seen or read about justified panic ... ponzi schemes, falsified financials, product liabilities, drugs that did not get approved, mines that flooded, strikes that shut down a company ... this is not one of those situations. Zynga did not lose money during the last quarter and they "conservatively" estimated that they may lose $40 million during this transitional quarter ... a $40 million loss for a company with $1.7 Billion in cash and no debt is not justified panic. In fact, this is why Dell wants to go Private again ... because the market overreacts to transitional periods. Zynga is attempting to manage their balance sheet while transitioning the company from web based Facebook games to a mobile platform and real money gambling. They seem to be managing it well ... they paid down debt, grew cash, and are beginning to launch games.
I would go on ... but, this is my fourth time trying to post a message and I'm done.
Now we learn why so much relentless bid side pounding was going on during the last few days; obviously there is no why to prove wrong doing, but it is indeed suspicious that someone had some inside info.
Normal stock rational doesn't have a seat at the table with ZNGA, as a simple compare in share price to GLUU and comparing key points, most companies with little to no debt and siting on 1.6b would in time past be scene as valuable. I am long, but we got stomped, and if any of the longs thought ZNGA was MM controlled before and the shorts were aggressive before have a rude awakening, this stock is dead rest of the year, not saying there won't be temporary gains, but shorts are going to eat this stock until 2014. IMOP if I was looking now to take a position I would recommend a very small position or wait and grow your money somewhere else until 2014.
blueskydriving, I agree as usual. I have to admit I thought the oppposite would happen; a miss on earnings and a rosy projection. I was buying on dips down to $3.10 and sold the $3.10 block minutes before the close at $3.34 ~ then bought back even more at $2.90 after hours. I almost gave it up at $3.05 but calculated the over reaction, and was happy to have an even lower cost average. If I have a chance to buy even more I certainly will as I took off today and hope to make a few trades for fun while watching. Look at my post today for the reason I purchased and the reason I don't care if it takes three to six months to make 50% or 100% return.
Sentiment: Strong Buy
Congratulations blueskydriving and truthnproof. I have been reading message boards it seems forever. And, yes, some messages sound just like yours. And when the ball falls out, do these posters remain? Hell, no. They have many id's and start all over again. Many of us are deep into Znga and are no where near a break-even point. We are suffering great losses; some of us because we listened to phony messages and believed them. Yes, I have been hooked more than once. I have not learned. I do hope however that anyone reading these messages take some heed: many messages are crafted so beautifully you might think you are reading the gospel. For those honest posters, and hopefully bluesky and truthn are a couple of honest posters, you too are speculating. You might be doing this because of a relationship with Xnga or their employees. I do not know. I know however some of the "healthy" messages I am reading sound a little like the ones that got me in deep doodoo. So, I will continue reading your messages and (hopefully you arae not part of the bad group). As I have said before, some boards I have followed -- and posters -- disappeared after pumping up and right after the disasters occur. These "professionals" have many id's and do not give a damn about shareholders or the company, for that matter. They are working and earning their living; yes, making a buck off the suckers. Now to anyone reading this message, I am long on Xnga. I purchased my few shares when I thought there would be some appreciation. There has been none. I will hold for the time being. I caution anyone to read the messages, spend a couple of nights thinking about your purchases (or sales), re-read the messages to see if the posters are still around, and then make a decision ... Take small steps and check out the companies on your own. After all, you are not at the casino and do not have to place your bets immediately.