Going to be a good day for Znga, but much better next week
Don Mattrick must be working on something "big" since he has not done the media circuit since he took over on Monday. Thinking Zynga will come out next few weeks with major strategy for all levels of online gaming, mobile, online gambling, partnerships, etc. Could test the $3.80 plus range today.
Don Mattrick is busy working on "the next 30 days" which is now even less ... did you know:
1) March 2011: WYNN was an early mover in online gambling ... EARLY!! ... then silent ... oh really ... nothing here, look away ... yeah, right ... that's how he made his billions
2) March 2011: WYNN attempted Poker Stars partnership in early 2011 ... failed due to Poker Stars legal issues
3) Aug 2011: WYNN considered acquiring bwin in late 2011 ... bwin 3x more expensive then and no US market yet ... deal fell apart ... most likely because WYNN was concerned about potential bwin's legal issues
4) Apr 2012: WYNN and Zynga in serious online gambling partnership discussions
5) Oct 2012: Zynga and bwin announce exclusive partnership in UK (as a test market) ... Zynga intends to be in every regulated market in the world ... bwin "hopes" to expand relationship with Zynga in new products and markets ... bwin eventually stops taking new players from "unregulated markets"
Now, ask yourself why an early mover like WYNN has suddenly become silent as the US market opens up. Ask yourself after Zynga discusses partnership with WYNN they suddenly pick bwin as their test market partner ... the dots are in your face ... Mattrick would not leave a $286 Billion company unless he knew the cards ... and, he knew eveybody elses cards ... so, here we sit at the table with our free drink waiting to see their hand
I'm going to take this speculative diatribe one step further and then I need to fly to China ... here is an "in your face" connect the dots ... WYNN is smart ... WYNN wanted a global player like Poker Stars and bwin but without any legal issues (none!) ... you will notice bwin shedding anyone and anything remotely associated with their PartyPoker merged component ... you will notice bwin shutting down "new" players from unregulated markets ... ah, but they are still allowing old players from unregulated markets to gamble on their sites ... why? ... because if they shut them down it would be an immediate 25% cut in revenue ... for a "potentially emerging" US market? So, the easier thing to do is to take a social gaming company with over 250 million players and teach them real money gaming ... maybe partner them with bwin, eh? Perhaps add a globally recognized name and talent like Kamikow. I'm telling you, this is going to be big! Off to Asia ... glta
Another good volume day in pre-market. The stock is definitely on the buy and watch list. Investors want in and realize its better to buy now then wait for a pull back. When you see a stock start to run higher and volume trading increase you jump on board and enjoy the ride up. Target close for today $3.79 but might be higher.