Contemplating my business/loan disasters of last year.1@
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After hours is going up nicely.. wonder what is up? 2.90 already.
Yeah, I halved my position today... I'm still holding on to a sizable position, but I need to see some improvements before I add more...
It could be two things... Cleaning house and gearing up for more focus on legalized gambling...
As for the severance, I'm sure these guys negotiated some good severance in case they got canned.. and during their hire being gifted huge chunk of ZCU's (Zynga cash units).
We'll have to see how much lower it goes, I for one am not putting anymore money into it until I see something significant and positive...
because another worthless exec left?
One note though.. exec's don't make products, they just leech off of a company's revenue by touting their name around.
Look at Allan's resume, no doubt he was once a good dev, but now is just a measly manager... I wouldn't fret his departure from Zynga.
Exec's leaving is actually a good thing. The day Pinkass leaves, the stock jumps up 200%
I'd be happy to see Zynga at above $3.. and stop going back down to the miserable 2's...
This stock is just a painful stock to own.
Dunno, when the stock was at $5, they said $17.. now they say $6... proportionately I think in some way they're saying the stock will go down further..
I don't know about any clauses, but their burn rate is pretty damn high with 3000 employees... many of which are very highly paid.
They need to stop making as many mistakes as they had been making when they were smaller. They need to be a lot more efficient and much leaner company...
I know how efficiently EA can make a game... For Zynga "the Ville" took 2 years?.. Seriously?.. I am not kidding you nor am I bragging, I could *single handedly* build that game in 1 year... and that's me single handedly. Give me a small team (5 guys) and we could do it in 4 months.
This is Zynga, and they took 2 f'ing years. and how much did they spend on it? Rumored to have cost them $10 mil.. I could have had it built for $75k (I shit you not)... EA could build that game in 3 - 4 months..
They need to straighten up, and fast.
There's no secret here, Zynga's management has no merit whatsoever. There are people able to do amazing and brilliant things with $10k, these guys struggle with 1.5 billion..
In my opinion, they need to trim down their work force to about 400 people. Like I said earlier... and focus on just the things that make money and the new promising things...
I've not heard anything about it... but I'm not sold on it personally... I think the ville games are just old and have been dying for a long time, so I was never in favor of yet another ville game... To me, farmville 2 is like the best horse whip you can get on the market... completely old and useless tech but the best shiniest one..
I've been getting a lot of requests on facebook to play the game tho..
It being on mobile could have been bigger .. bigger than facebook anyway.. but I guess they're gauging market acceptance right now, we'll see. We'll also have to see how much facebook helps them here, because facebook hasn't been helping them for a little while now...
I hope it runs to $5... in my view, it could run before this next earnings again... since last earnings were so bad, it can only be better this time... Irony is, once the lawsuits go away, the price should go back up to $5 as well.. sad that the lawsuits are in place for the opposite of that very reason..
After the second bounce off of 2.67, I can only guess Zynga is establishing a nice trading range here and a clear bottom has been set... My guess is we bounce between 2.7 and 3.4 till it gets back to $5.
Hope Pincus reads this article:
http://www.gamesindustry.biz/articles/2012-08-31-role-playing-mark-pincus
Well, from what I've heard, he doesn't think those lawfirms have a chance of winning regardless. They can't prove fraud right now... So he may not be concerned?
Pincus is a really good investor, he should just invest Zynga's money in other companies instead. Look at how he turned his $100k investment in facebook into $125mil... he should just do that with the 1.6 billion in cash that he has...
From what I've heard, I spoke to some of the execs that left Zynga, and they all said they were holding on to their stock...
Not sure what is planned, none of them would say, but I don't think they left because the ship was going down... they probably just left (imo) because they finished vesting and they can make more money somewhere else.
True, but also look at it this way... if you were offered compensation of X in stock... and then the stock lost 50% of its value.. would you continue to work there unless you got more stock?.. These execs get paid whether the company does well or not, so I think the real reason many are leaving is because they've essentially got reduced compensation than the agreed upon price... They're greedy ass****s...
Well, you guys convinced me to buy a 20k order... just got in at 2.82... I still feel really terrible about the state of the company and what not... but for now I'm back in..
They need to do a lot to gain my trust, to go back up to a 100k position..
This is the bad stuff I see:
They are seemingly at war with Facebook (FB) since many actions as of late (notably Facebook launching its own real money gaming title) seem to suggest the social networking giant trying to separate itself from Zynga.
Their *Ville* games are dying, they're not monetizing very well at all.
The market seems to be moving towards mid-core titles on mobile yet Zynga is far behind on that front.
Zynga has 3000 employees and they launch 3 - 4 games a year, of which none are really monetizing well at all.
It costs $7 - $10 million to create and launch a game for Zynga, this is hardly what I'd consider efficient at all. Smaller studios are able to create better quality titles at 1/10th the cost or less!
House of cards? - The company is supported right now from the revenue of a handful of old earners like Mafia Wars, Texas Hold'em etc. How long will they last?
Zynga faces a very real threat of not being number 1 anymore. Their MAU is rising yet their DAU is falling. They're clearly losing users.
They continue to hire highly paid execs that under perform.
Mark Pincus holds over 50% control, but most of his control comes from the class C shares he holds which has 70 to 1 voting power. So monetarily those shares aren't worth a whole lot, but he has a ton of voting power. And he would never sell those shares, who would?
They need to work on fixing all of the above... stock price will go up.. otherwise, we get shorted and messed with maybe down to 2.6 area... I'd HATE to be another bear sterns situation (below $2 in zynga's case).
They've hired retards in the past, maybe this one will turn out to be a good one.. I don't know very much about the gambling industry, she might be a pro, hope she is. I'm a little worried about what her compensation is... hopefully she's worth it.
My curiosity now lies in whether Zynga has some dealings with 888 with this new hire.. if that's the case, it may be worth getting into Zynga again..
Well, when the company is so tight lipped all the time, except when they have bad news to deliver.. easy to short such a stock.
Unless there is a federal investigation done, the lawyers will most likely lose this case... however if the SEC conducts a fed investigation, "sell your damn shares"
Rovio
The SEC protects scumbags like this, so don't worry, I don't think they'll ever launch a "federal" investigation... We live in a f***ed up world where the rich get richer and they're most of the time protected... I hope one day I'm a rich SOB too... I'd like this blanket of protection.
The thing that worries me is, if they launch an investigation into their sell off... Zynga is a company that always sent Week over Week numbers to pretty much everyone... I know when I worked there, I saw daily numbers with - and + signs...
If it is found that before the end of Q1, the numbers were taking a turn for the worse, or had been declining.. then the guidance was a lie and two days later they sell shares at the beginning of Q2.
Then all hope is lost, the stock will tank, company will go bankrupt, pincus will be arrested.
But, if they don't do a FEDERAL investigation, then those lawsuits won't win... it is just the lawyers opinion without proof... the stock goes up to $6/share.
Pinkass has already sold most of his shares, he's just holding on to his class C shares which have basically voting power, not really much value in comparison...
Looks to be going up on its next leg... you guys might see $3.50 tomorrow.. Wonder what is making it go up?.. acquisition rumors?
My point is.. no stock goes straight up... on the highs try to sell off 25% .. on the lows buy it back... letting it ride all the way up is basically saying, "I'm long no matter what"... Sure, anything can trigger this stock going up.. but are you sure that right now the stock isn't up on simply a sprinkle of good news and just normal fluctuations?
But either way, I would be risk averse on this stock...
That's cool.. I hope it does... but I would do some risk management here... you need to hedge your bets... don't just hope it goes straight up to $5 and then sell... Anyway, I said my piece.. just advice.
Please once again.. trade with at least quarter of your shares.. even if the stock goes up sky high, you make money on the remaining 75% of your shares.. please sell 25% of your shares now, just incase it goes back down to $3 and buy it back there..
Only suggesting be smart about avging down loss..
Mark Pincus has 20.5 million class C shares of stock.
20,500,000 shares * 70 = 1,435,000,000 votes!
How disingenuous can this POS get? Looks like pretty much all his control of the company is coming from his Class C stock... monetarily it is only worth about $65 million or so.. so when he says .. "NUH UH! I'm not selling nothing".. he's a lying pig. He sold a ton, right now it makes no sense for him to sell.. that pos.
That statement of his is as disingenuous as can get. First off, majority of his voting power right now comes from Class C shares which have 70 to 1 voting power. So it isn't like he's actually not selling, he's already sold a TON of shares. If he tries to sell his class C shares, he won't get a ton of money but will lose a ton of control.
Class C has to convert to Class A first in order to sell..
1 Class C converts to 1 Class A... but he loses 69 votes in that conversion as Class A has 1 vote per share.
Another thing also, rest of his shares are Class B shares which have 7 to 1 voting power. Same deal as before.. if he converts it.. he loses votes.
This prick has already sold a ton of shares, so for him to say he'll "NEVER" sell is a crock. He needs to get arrested.
if he doesn't know the difference, he'd better learn fast. Minecraft did huge amounts of revenue and this robot game is much much better than that.
Sorry, I don't invest in pinks or otcbb stocks anymore... they are much too risky for me.
Zynga should buy this game out:
Well, they already use their own servers... The platform for gambling needs to be done yes, and I believe they're working on it now...
Zynga needs to ditch the ville games, they are old and stupid. They need to deliver big on midcore games as well as mobile...
Well the problem is, Zynga's successful gambling titles are still through FB... even on mobile, it is through FB connect... Zynga will never be able to compete with FB on that front... Trust me, FB will do whatever they want... they can change their platform at anytime to fuck things up for Zynga... I would hate to see FB compete against Zynga... that would be bad news for Zynga in that case.
Zynga has the users for holdem already... Although a survey was done 2 years back and most users thought holdem was made by facebook...
Not sure how many know it is a Zynga game right now... but I presume it is 50% or so...
I don't like Zynga having to compete with FB for users... but FB doesn't have poker... so yeah, if Zynga hurries the hell up and announcing anything RMG related that shows they've launched something on that front that doesn't compete with FB... yeah, we'd see $5 for sure..
I would have thought so as well... but now I'm not sure since George Soros bought a sizeable stake in Facebook... and that billionaire has been slapped on the hand before for insider trading... He must know something is up... Wonder if he'll possibly take a stake in Zynga as well?
Also Harvard bought a position in FB too... seemed suicidal, but who knows?
I'm honestly not sure... My feeling was and is that we'll be in this trading range for a while until something big happens... 2.7 - 3.2 ... So I'd personally trade with half my position and try to recover losses.
I understand the feeling... that's a big loss... right now until something big happens, I don't see this breaking 3's
Yes, but I don't think we have to worry about those shares at all.. Those are held by Pinkass and execs... And there's no way they're selling down here... especially with the lawsuits.
Does anyone know how many shares of FB are getting unlocked Aug 16th?
Edit: On Aug. 16, about 271 million shares will be able to be sold by insiders, except for Mark Zuckerberg. Another 243 million will be available to be sold between Oct. 15 and Nov. 13. On Nov. 14, the floodgates open and 1.2 billion shares will be freed.