ZNGA: FINALLY SOME INTEREST FROM MARKET, (UPTRENDING) HEDGE,FUND,CLEARLINE,CAPITAL,INCREASED.ZYNGA,SHARES,BY,$18.58,MILLION
THE STOCK HAS GAINED MORE THAN 20% SINCE THE END OF THE LAST MONTH.
CLEARLINE CAPITAL LP WHO HAD BEEN INVESTING IN ZYNGA INC FOR A NUMBER OF MONTHS, SEEMS TO BE BULLISH...
ZYNGA: FINALLY SOME INTEREST FROM THE MARKET
JUL.15.16 | ABOUT: ZYNGA (ZNGA)
ORTHODOX INVESTOR
Long/short equity, deep value, value, growth
SUMMARY
RECENT RALLY HAS BEEN ATTRIBUTED TO THE SUCCESSFUL LAUNCH OF CSR RACING 2.
EXPECTED BUYOUT ACTIVITY in the industry might have played some part in causing this RALLY too.
CSR2 WILL LIKELY END UP BEING ONE OF THE KEY TITLES FOR THE COMPANY due to the relative LOYAL USER BASE of the racing games.
MONETIZATION might be EASIER FOR CSR2 than some of the previously released titles.
NOT SELLING THE HEADQUARTERS BUILDING IS A WISE DECISION.
ZYNGA (NASDAQ:ZNGA) HAS FINALLY RECEIVED SOME ATTENTION FROM INVESTORS AND THE STOCK HAS GAINED MORE THAN 20% SINCE THE END OF THE LAST MONTH.
Most commentators believe the reason behind this rise is the successful launch of its newest mobile game, CSR RACING 2. This might be true to some extent as THE GAME HAS RECEIVED SOME EXTREMELY IMPRESSIVE DOWNLOAD NUMBERS in its first few days and has been AMONG THE TOP GROSSING APPS ON IOS, but Zynga has a history of successful game launches which eventually fade.
THIS TIME THE EXCITEMENT MIGHT HAVE COME FROM EXPECTED BUYOUTS IN THE INDUSTRY. There has been some INTEREST IN SIMILAR BUSINESSES FROM SOME BUYERS WHICH MIGHT HAVE PROMPTED INVESTORS TO LOOK AT ZYNGA AS A POSSIBLE BUYOUT TARGET as well. This, however, is a theory and there might have been some serious belief among the investors that Zynga will be able to show some sustained growth this time. It will become clear over the next few days as the dust settles from the CSR2 launch - the game is still among the top 20 grossing (at #17) apps on iOS.
I PERSONALLY BELIEVE THAT CSR2 WILL DO BETTER THAN SOME OF THE PREVIOUSLY RELEASED TITLES BY THE COMPANY. FIRSTLY, RACING GAMES HAVE A NICHE FOLLOWING AND THESE USERS TEND TO BE LOYAL AND SPEND A LOT OF TIME ACCUMULATING AND BUILDING THEIR PORTFOLIOS OF VEHICLES. One of the biggest concerns that I have about the mobile and social media games is the high switching rates and lack of loyalty - this might not be a big concern for CSR2. Secondly, the mobile racing games have usually lacked the crisp graphics that the console or PC racing games have offered in the past.
THIS TITLE ALSO ADDRESSES THAT ISSUE AND ATTRACTS A LOT OF RACING GAMES ENTHUSIASTS. IF THE GAME IS ABLE TO BUILD A COMMUNITY THROUGH ITS REAL TIME RACING WITH FRIENDS AND OTHER ONLINE PLAYERS, THERE WILL BE SOME SERIOUS OPPORTUNITY FOR ZYNGA TO MONETIZE THIS TITLE THROUGH ITS IN-APP PURCHASES.
Source:
seekingalpha.com/article/3988777-zynga-finally-interest-market
CLEARLINE CAPITAL LP INCREASED ZYNGA INC (NASDAQ:ZNGA) BY $18.58 MILLION as Shares Declined
By NFRANK
JUL 16, 2016
MARC MAJZNER INCREASED ITS STAKE IN ZYNGA INC (NASDAQ:ZNGA) BY 69.49% based on its latest 2016Q1 regulatory filing with the SEC. Clearline Capital Lp bought 9.29M shares as the company’s stock declined 11.63% while stock markets rallied.
THE HEDGE FUND RUN BY MARC MAJZNER HELD 22.66 MILLION SHARES OF THE EDP SERVICES COMPANY AT THE END OF 2016Q1, VALUED AT $51.67M, UP FROM 13.37 MILLION at the end of the previous reported quarter.
CLEARLINE CAPITAL LP WHO HAD BEEN INVESTING IN ZYNGA INC FOR A NUMBER OF MONTHS, SEEMS TO BE BULLISH ON THE $2.52B MARKET CAP COMPANY. The stock decreased 0.35% or $0.01 on July 15, hitting $2.83. About 12.13 million shares traded hands.
ZYNGA INC (NASDAQ:ZNGA) HAS RISEN 10.98% SINCE DECEMBER 9, 2015 AND IS UPTRENDING. IT HAS OUTPERFORMED BY 5.41% THE S&P500.
CLEARLINE CAPITAL LP IS A NEW YORK-BASED HEDGE FUND THAT WAS FOUNDED BY MARC MAJZNER. It had more than $865.30 million assets under management in July, 2014. Taken from Clearline Capital latest Adv, the fund reported to have 8 FULL AND PART-TIME EMPLOYEES. AMONG WHICH 5 PERFORMING INVESTMENT ADVISORY AND RESEARCH FUNCTIONS. The hedge fund had between 1-10 clients…
Source:
presstelegraph.com/2016/07/16/clearline-capital-lp-increased-zynga-inc-nasdaqznga-by-18-58-million-as-shares-declined/
