Although I dislike this stock, it appears ready for a reflex rally.
This is for the adept and lucky day traders. I am neither. Like all the fake bounces of recent months, it will be a short lived affair. This most definitely is not a buy and hold stock. Should this little rally not occur, and it is overdue, we move towards $2-. Over time, we move in that direction anyway. Crap and beaten stocks like ZNGA can easily bounce 10% or more, especially since the company is prepared to speculate in its own increasingly worthless paper. This stock has also been subject to price manipulation by the big boys in the last three months. A cool $5 million on the buy side can move the beaten bull dog in a matter of minutes. Who blinks first?
A significant negative, and it should not be ignored, is that ZNGA is thus far unable to participate in today's healthy bounce on the NASDAQ. In about four weeks time, you can also expect heavy tax loss selling which will continue to put pressure on ZNGA. There are many more people sitting on losses than profits, shorts notwithstanding. As the bard would say ZNGA is "A Comedy of Errors." While you're at it, throw in tribal greed, insider trading, fraud, and anything vaguely representing integrity or ethics.