ZNGA: A SHORT SQUEEZE IN SHARES OF ZNGA
SHORT SQUEEZE DEFINITION | INVESTOPEDIA:
...SHORT SELLERS ARE BEING SQUEEZED OUT OF THEIR SHORT POSITIONS, USUALLY AT A LOSS.
A SITUATION IN WHICH A HEAVILY SHORTED STOCK OR COMMODITY MOVES SHARPLY HIGHER, FORCING MORE SHORT SELLERS TO CLOSE OUT THEIR SHORT POSITIONS AND ADDING TO THE UPWARD PRESSURE ON THE STOCK. A SHORT SQUEEZE IMPLIES THAT SHORT SELLERS ARE BEING SQUEEZED OUT OF THEIR SHORT POSITIONS, USUALLY AT A LOSS.
Short Squeeze Definition | Investopedia
source:
www.investopedia.com/terms/s/shortsqueeze.asp
TAKING A FRESH LOOK AT ZYNGA INC. (ZNGA)
BY
KELVIN WILSON
-
MARCH 9, 2017
Zynga Inc. (ZNGA) is an interesting player in the Technology space, with a focus on Multimedia & Graphics Software. The stock has been active on the tape, currently trading at $2.74, up from yesterday’s close by 0.00%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.
Fundamental Analysis
MONEY MANAGERS ARE ALWAYS INTERESTED IN A COMPANY THAT CAN FIND THE RIGHT RECIPE OF FUNDAMENTAL DATA BECAUSE IT REFLECTS SOMETHING IMPORTANT GOING ON UNDERNEATH THE SURFACE. Zynga Inc. (ZNGA) currently trades with a market capitalization of $2.41 Billion. That value represents a market adjusting for revenues that have been growing by 2.57 % on a quarterly year/year basis as of the company’s last quarterly report.
THE BALANCE SHEET HEALTH OF ANY COMPANY PLAYS A KEY ROLE IN ITS ABILITY TO MEET ITS OBLIGATIONS AND MAINTAIN THE FAITH OF ITS INVESTMENT BASE. FOR ZNGA, THE COMPANY CURRENTLY HAS $858.67 MILLION OF CASH ON THE BOOKS. YOU CAN GET A SENSE OF HOW SUSTAINABLE THAT IS BY A LEVERED FREE CASH FLOW OF $49.7 MILLION OVER THE PAST TWELVE MONTHS. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $-0.01 on a per share basis this quarter. Perhaps, that suggests something about why 1.04% of the outstanding share supply is held by institutional investors.
Technical Analysis
It’s important to check the technicals to get a sense of how ZNGA has been acting. Looking at the stock’s movement on the chart, Zynga Inc. recorded a 52-week high of $3.08. It is now trading 0.34% off that level. The stock is trading $2.64 its 50-day moving average by -0.1%. The stock carved out a 52-week low down at $2.12.
IN RECENT ACTION, ZYNGA INC. (ZNGA) HAS MADE A MOVE OF +6.61% OVER THE PAST MONTH, WHICH HAS COME ON STRONG RELATIVE TRANSACTION VOLUME. OVER THE TRAILING YEAR, THE STOCK IS OUTPERFORMING THE S&P 500 BY 6.07, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 3.50% with $726.88 Million sitting short, betting on future declines. That suggests something of the likelihood of A SHORT SQUEEZE IN SHARES OF ZNGA.
Source:
www.stocknewsjournal.com/2017/03/09/taking-a-fresh-look-at-zynga-inc-znga-3/
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