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Ron Reed  

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  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    Closed out this morning with a profit of 456% (220% for the whole strategy) on the put, the call will remain open and possibly sell back to the market a $0.05 or expire worthless, either way it was well worth it.
    Oct 5, 2012. 02:13 PM | Likes Like |Link to Comment
  • Zynga (ZNGA) has resumed trading following its Q3/2012 warning. Shares are down 16.5% AH to a new post-IPO low of $2.35, leaving the company with a market cap of less than $2B. Facebook (FB) -1.6%. Groupon (GRPN) -0.6%[View news story]
    I have not written an article that got it wrong yet. I cannot recall any strangle I've ever done that has lost money. I've had some make just enough to cover the commission fees, but I've never lost money on one. They are pretty straight forward and work very well on any volatile stock.
    Oct 5, 2012. 09:54 AM | Likes Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    Thursday, October 4, 5:10 PM Zynga (ZNGA) has resumed trading following its Q3/2012 warning. Shares are down 16.5% AH to a new post-IPO low of $2.35, leaving the company with a market cap of less than $2B. Facebook (FB) -1.6%. Groupon (GRPN) -0.6%.


    Thursday, October 4, 4:58 PM Zynga (ZNGA) warns it expects 2012 bookings of $1.085B-$1.1B, below already lowered guidance of $1.15B-$1.225B. The company expects Q3 revenue to reach $300M-$305M (above a $275.9M consensus), but forecasts bookings will amount to just $250M-$255M. Zynga blames weakness in games within its web "invest and express" category (e.g. FarmVille, CityVille). Also, an $85M-$95M write-down is being taken on the OMGPOP acquisition. Shares are halted, and will resume trading at 5.05PM ET. 8 Comments [Tech, Earnings, On the Move]
    Oct 5, 2012. 07:30 AM | Likes Like |Link to Comment
  • Zynga (ZNGA) has resumed trading following its Q3/2012 warning. Shares are down 16.5% AH to a new post-IPO low of $2.35, leaving the company with a market cap of less than $2B. Facebook (FB) -1.6%. Groupon (GRPN) -0.6%[View news story]
    Look here, I indicated when and what to buy:
    http://seekingalpha.co...
    Oct 5, 2012. 07:29 AM | Likes Like |Link to Comment
  • Shares of Gastar Exploration (GST -25.1%) are reeling after Chesapeake (CHK) files a lawsuit seeking rescission of certain transactions that closed in 2005 involving GST's Hilltop Prospect in Texas and CHK's investment in GST common stock. In addition to its original initial investment of $81.6M, CHK seeks reimbursement of additional lease and well costs. [View news story]
    They knew of the risk prior to joining the venture (they openly admit it in the filing). They received a substantial discount due to the risk. And now they want money back and money back on common shares they purchased?! No, I don't think they should get anything back. That is standard contract law. Beyond that, if they get money back I want my money back on the investment I've lost owning CHK stock and options. Don't take me wrong, I'm not a bitter investor, I knew the risks when I bought and have made money and will make money on CHK, but this filing is plain stupid.
    Oct 3, 2012. 05:04 PM | 2 Likes Like |Link to Comment
  • Shares of Gastar Exploration (GST -25.1%) are reeling after Chesapeake (CHK) files a lawsuit seeking rescission of certain transactions that closed in 2005 involving GST's Hilltop Prospect in Texas and CHK's investment in GST common stock. In addition to its original initial investment of $81.6M, CHK seeks reimbursement of additional lease and well costs. [View news story]
    Wow! new levels of depravity at CHK. Whats next? Strong arming the employees of their lunch money?
    Oct 3, 2012. 03:24 PM | 4 Likes Like |Link to Comment
  • EV roundup: 1) General Motors (GM +0.7%) widened its lead as the top electric vehicle seller with September Volt sales of 2,851, while the Toyota (TM -0.1%) Prius line doubled sales Y/Y to 18,932 to pace hybrid sellers. 2) Israeli EV infrastructure player Better Place replaces CEO Shai Agassi with top exec Evan Thornley as financial difficulties at the company mount. 3) The DOE wants Tesla (TSLA -1.3%) to pay back its government loans at an accelerated rate when it begins making payments in December. [View news story]
    Its pretty sad when your big proponent gets nervous and asks for their investment back sooner than expected.
    Oct 3, 2012. 09:54 AM | 2 Likes Like |Link to Comment
  • Chesapeake Energy (CHK -0.8%) has exploited little-known laws in Texas and at least three other states to force land owners to hand over drilling rights and sometimes forfeit profits, according to the latest Reuters special report on the company. Land brokers, land owners and lawyers say such deals are pushing ethical and legal limits. [View news story]
    Many people don't understand how surface rights and mineral rights work and sometimes get ugly in the real world. If you own land and do not own the mineral rights, the owner of the mineral rights has the right to access those minerals. They (mineral right owners) almost always work very hard to come to an agreement with the land owner before anything else is done to cover damages in access, use loss, etc. Most companies (CHK included) will bend over backward for the land owners just to keep them happy, going over and above the original agreement. For example, building roads to suit the landowner's use later on, building fences where and of what type the landowner wants, restriction of movement when livestock is out, clearing more land that the oil company needs (so the landowner gets more grazing land), etc. Some people are just totally bent on not allowing access and they are the ones that end up on the short end. Generally they are folks that would never be satisfied and end up being taken to court and loose all the mandated funds to pay for the legal fees. I'm sure each case is a little different but I've seen a lot of both sides and rarely does the oil company screw the landowner.
    Oct 2, 2012. 05:19 PM | Likes Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    Yes, and more dramatic actually. The est. range from -$0.02 to +$0.01 with the average of the 23 following at $0.00. When a stock comes in at any large percentage positive or negative the higher the swing the more the market will react. So If we see a $0.05 or a -$0.05 reported that is 500% higher than or lower than the average consensus numbers. Granted it will not move to the same magnitude as a more solid company that is making money and has been for a while. Should earnings come in just as estimated then the focus comes on the rest of the numbers and should all the numbers come in just as expected I'd expect the stock to jump a good 10% or more and work its way back up to the $5.00 point after a few quarters of good solid performance. Looking at the overall sentiment I think most investors are expectation a pretty negative qtr. If the come in more than 10-15% negative I expect a flat run down which I cannot even hazard to guess how far before they bounce back up and find a new low.
    Oct 1, 2012. 06:21 AM | Likes Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    You know, the odd thing here is that unless he is lying about his FOI requests, just the mere hint of a problem with little value in the actual article has made him more money than a proper article would have since it will be generating clicks. Then he could also be opening a short position just as he sees if his article has made any difference in the market. His lack of interest (or defense) to all the critics here has me seriously wondering his motivation. I've kept neutral on the issue and asked for more info and get no response. I'm surprised SA did not intervene on this, then again we get back to the publicity issue for them too, where is that motivation pushing the editors? I do agree that the article should not have been published as written as I think it lacks substance, and should have had more info contained within. But hey I guess if it makes him money and he's not exactly doing anything illegal like GOA did, then more power to him and we are just the sheep adding to it.
    Sep 27, 2012. 03:17 PM | 1 Like Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    Thank you for replying, can you address the questions I asked please? They may have been missed with all the comments posted:
    What was the reason for the request? What is the evidence that led you to make the request? What do you suppose is the reason for investigation? While the information you have provided is interesting, it is not enough.

    You may be right or wrong, time is the only thing that will allow that decision to be made. I'd like more info myself and don't think enough was given to warrant the article; what was presented was almost a tease.
    Sep 27, 2012. 07:29 AM | Likes Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    I notice the author has not bothered to respond to any questions.
    Sep 26, 2012. 09:27 AM | Likes Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    Well, at least one editor had to approve it right?
    Sep 25, 2012. 11:36 AM | Likes Like |Link to Comment
  • Is ZAGG The Target Of An SEC Investigation? [View article]
    What was the reason for the request? What is the evidence that led you to make the request? What do you suppose is the reason for investigation? While the information you have provided is interesting, it is not enough.
    Sep 25, 2012. 11:16 AM | 1 Like Like |Link to Comment
  • A Hedged Play In Zynga Just Ahead Of Earnings [View article]
    For the time being nothing. With a Strangle you do not make minor changes once it has been implemented unless you see the change you were either expecting, reached the point you have set to get out of the trade, or decide that the trade was a failure and attempt to re-coup some monies.
    Sep 25, 2012. 07:25 AM | Likes Like |Link to Comment
COMMENTS STATS
295 Comments
220 Likes