Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
10 Reasons To Sow While Others Harvest
http://seekingalpha.com/article/1112011-zynga-10-reasons-to-...


Zynga Positives

1. Research and Development
2. Leading Paradigm Change in Gaming
3. Massive User Base
4. Restructuring and Cost Cutting
5. Real Online Gambling
6. Huge Cash Hoard
7. Share Buyback
8. Acquisition Target
9. Synacor Partnership
10. Valuation

...

Zynga Risks

1. Facebook Umbilical Cord cut off
2. Acquisitions at a High Price
3. Monetization Issues
4. Dependence on other Internet Platforms

...

We think that Zynga is currently highly undervalued, with the market giving it a value of only $800 million (if you exclude its cash from the balance sheet). The market is pricing the company as if it will go bankrupt, without the possibility of it massive R&D team introducing new blockbuster game titles. The company's management has started to sharply cut costs and streamline operations. The company's strong push into online gambling provides another upside possibility. The risk reward proposition is very compelling in the case of Zynga. Given its current valuation, it also looks like an attractive buyout target by bigger Internet and gaming companies.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement