Zynga Inc (ZNGA)

[xlt leader]

Zynga has a goal of focusing on mobile and on-line gaming. They already have zynga poker which is used by over 30 million people right now. The current poker does not take real money but the move by the states to pass on-line gaming will allow Zynga to partner with companies like Wynn , Caesars, Boyd or MGM and BWIN to allow for real betting. Many states are starting to enact laws to enable this. Nevada and Delaware have passed laws there are many states at various stages. New Jersey will be next possibly today, followed by Pennsylvania, Hawaii, California and Massachusetts plus many more at various stages.

Very soon in the next few months Zynga will launch Zynga plus poker/casino taking live bets in the UK in a partnership with Bwin. The UK is the worlds largest legal gaming market. They will use this experience to tweak their strategy when on-line gaming goes live in the US. Bottom line Zynga is poised to increase revenues far greater than the analysts have modelled. At some point they will upgrade Zynga.

Technically once Zynga gets past the last runs high around $3.75 there is no resistance for another dollar from there.