Some thoughts: I'm pretty high right now .. but I am seeing things clearer.
First let me address some posts I disagree with:
By HotRod
"Other Zynga initiatives include gambling games that involve real money. During the call, Mr. Pincus said the company has its first real-money games "in development," adding however that it has "no current plans for the U.S." market. "
The real money online gambling market (outside the US) right now (which is in its infancy) is $15+ billion a year industry.
Zynga Poker, Slots and Bingo are the largest in the world right now.
So putting 2 & 2 together, it is clear that Zynga hitting the RMG market right now would take it out of it's infancy and make Zynga number 1 to eat that share of the $15 billion market.
I also realize why Mark might be choosing his words carefully to give a negative subtle sentiment to the stock.
I think... wait for it.... :
Mark Pincus *wants* the stock low for the following reasons:
1) The way they issue shares to employees is through a buyback of the float.
2) When the stock price is higher, Zynga has to pay more tax to the IRS when they issue that stock to employees. (I don't know why, but fuck the IRS).
So you guys see?? I don't think it is the weed talking, I think keeping the stock low saves the company money at the cost of the shareholders.
So that bastard is fucking over all of the shareholders to save the company money. He doesn't realize he has 2 motives that are so clear now, that he could have an SEC investigation on him.
More things I see in the future? Lawsuits against pincus for stock manipulation. But he did it in such a clever sneaky way, that it would be hard to prove.
Think about it, let's say every month, all shareholders vest a total of 5 million shares. That means they have to be buying back 5 million shares from the market.
Should they pay $25 mil for shares at $5/share? or worse $50 million for shares at $10/share? Or can they just pay $15 million and really don't care about the employees because only the employees with LONG TERM vision (the kind they want to keep) will not really care about the stock and believe in his stupid mission.
It is all so clear. Plus the tax savings is big incentive too..
By WannabeFortune
"definitely, employees whose lock-up expire on aug 16 will sell off now."
No, the people who's lockups are expiring are Pinkass and his close friends, all whom sold at $12.
So they won't be selling over here. I think they're really confident they can take this stock up to $12/share, simply because they know they have a shot at making so much money with what they have. I'm serious.
So they're okay with letting the stock fall, save money from the IRS and let the stock go up again, simply by announcing higher earnings next quarter.
Last thought for you guys: Why didn't Pinkass say anything interesting or sounded like he wasn't worried at all during the webcast? Isn't he the largest shareholder in Zynga? How many more signs do we need?
