10 Reasons To Sow While Others Harvesthttp://seekingalpha.com/article/1112011-zynga-10-reasons-to-...Zynga Positives1. Research and Development2. Leading Paradigm Change in Gaming3. Massive User Base4. Restructuring and Cost Cutting5. Real Online Gambling6. Huge Cash Hoard7. Share Buyback8. Acquisition Target9. Synacor Partnership10. Valuation ...Zynga Risks1. Facebook Umbilical Cord cut off2. Acquisitions at a High Price3. Monetization Issues4. 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.
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