Upside catalysts come in the form of surprise good news. Not the confirmation of something already known.
If YOU already know about NJ Online Gaming, don't you think the money that can drive this stock already does as well? We could see a "Buy the Rumor Sell the News" situation coming. Further, if the JPM Conference is as boring and full of nothing as the GS Conference was. I'd expect a sell-off.
If, however, they announce something NEW and UNEXPECTED that could serve as a positive catalyst, or if we saw some major upgrades or bullish comments coming out of Wall Street - perhaps a big Hedgie revealing that they have already loaded to the gills, THEN we might see more positive price movement.
At some point, something meaningful has to be revealed that increases confidence that the game plan they've already been touting is actually working, and the next earnings release isn't going to be impacted by any of what keeps getting blabbered about non-stop here.
Agreed unexpected news is always a catalyst but everyone knew Nevada was coming yet the stock trade 12 million shares the first half hour on that news and the price went from $2.82 to $3.75.. last time the New Jersey news came out Zynga spiked in price. Ultimately you don't buy just for this but without these bills, there is no on-line gaming revenue potential in the future so providing the framework for them is important
Sentiment: Strong Buy
Except that ZNGA is trading at a level that reflects a company with a failed business model and burning cash ... only they are directly in the epicenter of a evolving new business model and growing cash ... buy the rumor, sell the news works great for mature companies trading at high multiples
NJ signing will be a positive for the stock. There is huge momentum in this stock and tons of shorts. While there will be pullbacks, the news of the signing will be good for another 10% bump with a pullback at some point.