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Vegas Ben  

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  • Zynga (ZNGA -11.6%) resumes trading following the layoff of 18% of its workforce. [View news story]
    That's a fair question. I wouldn't exactly say that I was bullish when the price was trading in the $3.40-$3.50 range. I was somewhat neutral and leaning slightly bearish at those levels. I was hoping for a drop under $3, because I've bought under $3 and sold with 30-40 cent gains a few times and was hoping to do it again. My initial instinct when seeing that it had dropped under $3 again was to buy, but after I considered the reasons for the drop, I'm starting to see a very bearish picture. One of the reasons why I was happy to buy under $3 was the company's large shareholder equity, which gives it some downside protection at those levels, but continued losses are going to eat away at that equity. It is becoming very clear that the incredibly huge competition is too difficult for Pincus to handle. Their cash cow, Facebook games, is fading away into obscurity. Their ability to get players to spend $1,000 on their silly games is eroding. They have, thus far, failed at proving that they can handle the online gaming market, which also has incredibly tough competition. They'll still have have over 2,200 employees after this layoff, which is far too many for a struggling game studio.
    Jun 4, 2013. 12:55 PM | Likes Like |Link to Comment
  • Zynga (ZNGA -11.6%) resumes trading following the layoff of 18% of its workforce. [View news story]
    After thinking about it a bit, it is very unlikely that I'll buy back in again around $3. Recovery is becoming elusive. I actually might take a bearish position instead.
    Jun 3, 2013. 08:55 PM | Likes Like |Link to Comment
  • Zynga (ZNGA -11.6%) resumes trading following the layoff of 18% of its workforce. [View news story]
    Buyout rumors are going to start popping up again!
    Jun 3, 2013. 08:46 PM | Likes Like |Link to Comment
  • Zynga (ZNGA -11.6%) resumes trading following the layoff of 18% of its workforce. [View news story]
    I've been hoping that it would drop under $3 again. Another round of layoffs might be good for ZNGA. Layoffs helped the HPQ stock price. It might be time to buy back in again.
    Jun 3, 2013. 05:59 PM | Likes Like |Link to Comment
  • S&P's Scott Kessler goes contrarian on Facebook (FB -3.4%), upgrading shares to Buy in response to their May swoon. Kessler touts Facebook's "strong market position, mobile momentum, significant growth, and considerable balance-sheet flexibility." Meanwhile, Facebook is borrowing a line from Twitter and giving major public figures the chance to create Verified Pages.  Hashtags, another Twitter staple, are reportedly on tap. (earlier: I, II[View news story]
    He won't last long as CEO with an $8 share price. :-) Zuck got lucky with Facebook. Right place, right time! He seems like a pretty smart guy, but he doesn't appear to have the ability to guide FB in the right direction anymore.
    Jun 3, 2013. 04:05 PM | Likes Like |Link to Comment
  • Intel (INTC +4%) officially launches its first Haswell desktop and notebook CPUs. Thanks to both CPU architecture and platform improvements, Intel is promising a 30%+ boost in battery life over the current-gen Ivy Bridge under load, and more than a doubling of standby time to 10-13 days. Faster wake times, major GPU improvements (thanks to Iris) and thinner form factors are also promised. Reviews of high-end Haswell parts from CNET and AnandTech indicate moderate CPU performance gains, but also noticeable power improvements in real-life use. Dell, Asus, and others are announcing Haswell systems ahead of Computex, which begins tomorrow. (previous) (Barron's[View news story]
    Just in time for WWDC! Long AAPL, INTC!
    Jun 3, 2013. 01:08 PM | Likes Like |Link to Comment
  • S&P's Scott Kessler goes contrarian on Facebook (FB -3.4%), upgrading shares to Buy in response to their May swoon. Kessler touts Facebook's "strong market position, mobile momentum, significant growth, and considerable balance-sheet flexibility." Meanwhile, Facebook is borrowing a line from Twitter and giving major public figures the chance to create Verified Pages.  Hashtags, another Twitter staple, are reportedly on tap. (earlier: I, II[View news story]
    I'll wait until it is $8 per share and has a new CEO before buying it!
    May 29, 2013. 05:35 PM | Likes Like |Link to Comment
  • S&P 500: Do Not Buy This Dip [View article]
    I'm going to need dips that are bigger than 1% to scare me away! I'm buying on this dip!
    May 29, 2013. 03:48 PM | 1 Like Like |Link to Comment
  • Even With Extreme EPS Growth, LinkedIn Is Still A Loser's Bet [View article]
    Well, TSLA is set to quadruple sales year over year, so its growth is 400% y/y. Though, it appears to be 1 huge jump because of finishing and releasing a product that has a large demand, and not the steady growth of LNKD.
    AMZN used to have a P/S of 22.5 at its peak in 1999. It has continued to grow sales ever since, but has never gotten back to that P/S ratio or anywhere close ever again, and didn't get back to that same stock price for nearly a decade.
    LNKD had a ttm P/S of just barely under 22.5 right before it released its most recent earnings. Though, to be fair, it looks like they'll be able to make around 1.5 billion in sales per year, which would only give a P/S ratio around 12.8, which is still pretty high in my opinion.

    I'm long on LNKD puts.
    May 24, 2013. 11:29 AM | Likes Like |Link to Comment
  • Housing Recovery: Average, Median Sales Prices For New Homes Reach All-Time Highs In April [View article]
    New home sales are passing sales during the bubble? Geez... I'm not sure if that is a really good sign or a really bad sign!
    May 23, 2013. 05:55 PM | Likes Like |Link to Comment
  • Even With Extreme EPS Growth, LinkedIn Is Still A Loser's Bet [View article]
    That is exactly why I base my bear views on the price to sales ratio. It seems to be currently hovering around 17-20, which is extremely high. Compare that ratio to other companies, and you'll clearly see that it isn't just the earnings that has to grow. They would have to grow revenue by a LOT in order to get the P/E even close to a normal level, whether they are re-investing earnings or not.
    LNKD: 17.62
    GOOG: 5.52
    FB: 11.08
    AMZN: 1.87
    INTC: 2.26
    ZNGA: 2.21 (If it was at its IPO price of $10, it would be 6.5 right now)
    CRM: 8.79
    TSLA: 10.67
    May 23, 2013. 02:27 PM | 1 Like Like |Link to Comment
  • Tim Cook (AAPL) testifies at a Senate hearing on corporate offshore taxes. "We don't depend on tax gimmicks," Cook asserts, while pushing for a big overhaul of U.S. corporate tax code. "Apple has always believed in the simple, not the complex." Sen. John McCain isn't satisfied with Apple's defenses, claiming the company "has violated the spirit of the law if not the letter of the law." Sen. Rand Paul has strongly defended Apple. "Congress should be on trial here for creating a byzantine tax code." (previous[View news story]
    Apple has every single base covered! They spend billions and billions of dollars to make sure that all of their finances are in order!
    May 21, 2013. 01:10 PM | 1 Like Like |Link to Comment
  • Apple (AAPL +1.9%) roundup: 1) Brian White cites Chinese 3G growth as a reason for his $888 PT: he points out China's 3G sub base rose 83% Y/Y in April to 293.1M, and is expected to hit 375M-400M by year's end. China Mobile (CHL - previous) had 120M 3G subs; China Unicom (CHU) had 92M, and China Telecom (CHA) 81M. 2) Taiwan's Economic Times reports Apple is testing 1.5" OLED displays for an iWatch, and that "market rumors" indicate Foxconn has received iWatch trial production orders. 3) Digitimes reports MacBook orders are expected to grow 20% Q/Q in Q2, as Apple launches new systems sporting Intel Haswell CPUs at June's WWDC conference. [View news story]
    Unless it has a built-in teleporter, I'll pass.
    May 21, 2013. 12:00 PM | Likes Like |Link to Comment
  • Apple (AAPL) releases Tim Cook's official statement (.pdf) to the Senate ahead of his Tuesday appearance at a hearing on corporate tax payments. Among other things, Apple claims it paid ~$6B in federal taxes in FY12 and a 30.5% effective federal tax rate, and that its foreign units don't engage in the practices the hearing focuses on (the shifting of IP to offshore havens, revolving loans from subsidiaries, etc). The company proposes a tax system that's "revenue neutral, eliminates all tax expenditures, lowers tax rates and implements a reasonable tax on foreign earnings." (previous[View news story]
    Also, Davidoff, I'd still love to hear about how you think companies like Apple and Samsung should be taxed in a way that doesn't give an unfair advantage to Samsung.
    May 20, 2013. 08:56 PM | Likes Like |Link to Comment
  • Apple (AAPL) releases Tim Cook's official statement (.pdf) to the Senate ahead of his Tuesday appearance at a hearing on corporate tax payments. Among other things, Apple claims it paid ~$6B in federal taxes in FY12 and a 30.5% effective federal tax rate, and that its foreign units don't engage in the practices the hearing focuses on (the shifting of IP to offshore havens, revolving loans from subsidiaries, etc). The company proposes a tax system that's "revenue neutral, eliminates all tax expenditures, lowers tax rates and implements a reasonable tax on foreign earnings." (previous[View news story]
    There is a a pretty big difference between deferring taxes and not paying taxes. When the money is brought into the U.S., and it likely will be, they will pay taxes on it. However, they will likely wait until there is a "tax holiday" or some significant tax reform before they do it.

    The executives are making smart financial decisions, and if they didn't make smart financial decisions, they'd likely get fired and replaced with people who would.
    May 20, 2013. 08:52 PM | 1 Like Like |Link to Comment
COMMENTS STATS
216 Comments
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