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Zynga, Inc. Message Board

xzhuchina 4 posts  |  Last Activity: Jun 15, 2016 10:51 AM Member since: Jul 4, 2002
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    amazing value and chances for 30% upside in days

    by xzhuchina Jun 15, 2016 10:30 AM
    xzhuchina xzhuchina Jun 15, 2016 10:51 AM Flag

    Valuation is slightly higher because PRGO is ready to sell itself (without a CEO etc etc) while others are ready to buy, that creates valuation differentials. You pay a few dollars for the option of winning $40 in a day. That is 35% return if you think of it.

    I am not saying TEVA and MYL are not great companies. They are. They just don't have the optionality.

    Mr Buffett said: " stock market is a device for transfering money from the impatient to the patient." I can wait a year for PRGO merger and acquisition to happen.

    Regulatory risk is low giving the situation. Otherwise those wall street clowns will blow that earlier.

  • Obviously SI source surprised major clowns on wall street and they have to jump out to discredit the news (so they can cover shorts and load up shares) At 105 what is the risk of holding a 13PE stock? It could go a few bucks lower but hey, 13PE won't stay forever with or without a buyer. Upside: 150. Could be done at 139 if they really want to sell fast but for a company with at least 3 natural buyers, it shouldn't go very cheap.

    Conclusion: Downside limited and upside is great. Even if it didn't go through this time it will be sold in a year.

    Sentiment: Strong Buy

  • Overall this is bad news. Pay attention to the wording: "seek higher offer." not "negotiating with Bayer for a higher offer." This implies, 1, Bayer is not willing to present a substantially better offer, without further evidence.
    2: At this price tag, BASF and others won't be able to push too much further.

    Bottom line: MON rejected only credible offer it has on the table.

    As of now if MON accepts, then stock goes to 118 or so, 10 upside (will leave $4 for regulatory approval risk and interests to hold until the end) but if the deal fails it goes back to 90. basically 1:2 game. If you win you win 1, if you lose you lose 2. I just sold my 1800 shares. Not going to play anymore. Risk reward 1:2 is not good.

  • If you really know what you are doing please help. I am so confused about $YHOO valuation. It seems YHOO contains $30B BABA, $8.5 YAHOO JP, and the rest (which has been apprised for 8B by different parties) "core business." So giving the current price there must be some tax priced in. Is this understanding correct? What is the likely scenario to Yahoo stock if VZ buys YHOO JP and yahoo core business? How much after tax belongs to yahoo shareholders?

    Sentiment: Strong Buy

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