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In Play: Virtual Farm-Backstopped Default Delay Securities Launched After Zynga Implodes
UPDATE: ZNGA is down 40% now, trading with a $2 handle
They said it could never happen. They said it was social, mobile, everything... Well, oops... It seems the drought conditions around the world have hit the virtual farms too. Let it 'Virtual Rain'
- *ZYNGA 2Q REV. $322.5M, EST. $343.1M
- *ZYNGA 2Q ADJ. EPS 1C, EST. 6C
- *ZNGA SEES YR EPS ADJ 4C-9C, SAW 23C-29C, EST. 27C
and with that 33% 40% of market cap is wiped away... and the derivative play - Facebook is down 7% after-hours and EURUSD is dipping as all that virtual cash is vaporized (yes seriously EURUSD is dropping!). We assume that very soon, congressmen around the country will be calling for a government intervention as the hand-of-god impacts these poor virtual farmers. FYI - Margin Stanley is the largest ZNGA holder at 13.84%.
and since the IPO...
Finally, as a reminder, ZNGA priced its follow on on March 28 at $12.00,
three months after IPOing. Morgan Stanley made money on both events.
Will MS now also be the advisor on the firm's eventual Chapter filing?
Too bad there are no assets to liquidate, unless of course DIP lenders
accept virtual stuff for LTV calculations.
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I felt a great disturbance in the Farce, as if thousands of Menlo Park citizens cried out in terror and were suddenly silenced. I fear something terrible has happened.
FB crushed in after hours. -2.22%
"I only want to see you standing in the virtual rain. Virtual rain, virtual rain...."
Back when he was known as Prince before he was Symbolman before he was Prince again...
Virtual rain, such a timeless classic...
Hey, are the virtual regulators going to force the actual TBTF banks to take any virtual haircuts the next time they receive actual bailouts again?
Twitter will save them.
Gimmick 2.0
Aw look, groupon and Zynga are tracking down together, isnt that cute, shit does sink to the bottom.
Zynga's founder (ex-bankster) asks for bailout of his virtual farm foreclosures.
The flames from this particular roach motel inferno are licking at the heels of the usual institutional arthropods: Capital Research, Federated, Morgan Stanley, and that perennial mo-mo whipping boy, Fidelity.
Yep. Those floaters just need a little time for the gas to come out.
Since you mentioned Prince, I couldn't resist posting this. This song is a cover of 'Raspberry Beret' as sung by Warren Zevon + 3 former members of REM. This is awesome (much better than Prince's version - imho)...
Crank it up!
http://www.youtube.com/watch?v=WNCcemZ3CkE
"Dirty Mind" was Prince's last worthwhile LP...
http://1.bp.blogspot.com/-KdCxPlKNH_8/T_oRJHoWTNI/AAAAAAAABY0/JHlFK1CVWu...
Once he embarked upon his sanitized movie/soundtrack odyssey, it was frankly all downhill from there.
hahahah, hedgeless that was one of the best comments I've ever seen on here.
"Ruh roh Raggy!"
Zynga is facing a drought
Their future is surely in doubt
Their online manure
Has lost its allure
And Farcebook is facing a rout
don't invest in any startup featuring dogs headed by ex-bankster
Limerick King is in the house.
Time to break out the finest champagne (ala LIBORlicious) and get this party started.
Thanks Truth...I know I haven't been posting much the last few months, but my heart is always at the Hedge!
After all Zynga only lost 478m net against 90m profit in the last 4 years. But still valued at 3.74 Billion?
I smell a big bonus for all the insiders via a big steaming pile of debentures very soon.
BAZYNGA!
http://youtu.be/u85u2ymDl8M
Groupon is next.. web 2.Oh my god, what a pump n dump.
greedy never learn
DON'T BE STUPID. BTFD. ZYNGA IS AT THE PERFECT BUY RIGHT NOW!
Disclosure: Short Znga 500,000,000 shares.
Hedgeless Horseman said: "as if thousands of Menlo Park citizens cried out in terror and were suddenly silenced."
LOL
Watching Chipotle and Green Mountain Coffee crash were almost as enjoyable.
When the hoity-toits can't afford Whole Foods anymore that one will be really fun to watch get monkey-hammered.
Will Pandora's Box be opening soon?
Or even:
I felt a great disturbance in the Bourse today.
Obi-Wan Hollande, you are our only hope. Obi-Wan Hollande, ................
Well, Facebook is down 8 pct. and i am drunk. Happy times.
Trust the Farce Luke.
(Voice of Darth Vader) "Let him go, STAY on the Leader".
The Dept of Cyber-agriculture is pressing Congress for cyber-subsidies for virtual-farmers...
THANK YOU FOR PLAYING!!!
And, may the Farce not be with you (HT HedgelessHorseman).
When is FB earnings report? :)
Tomorrow (Thursday) after the close. LULZ guaranteed.
+ 268mm shares will be unlcoekd (3months after IPO) and then another 1.7b by the end of the year.
You mean selling stuff to kids with no jobs and boatloads of student debt and whose parents are underwater on their mortgage and have no jobs isn't a sustainable business?
They could always slaughter some of that virtual livestock and have a virtual feast.
The actual weight loss might bring them back to reality.
Yep, thought their business "model" was a little weak when I bought my Znga 5 puts a few weeks back. Even I didn't imagine this kind of blood bath so soon though. I rolled by GRPN puts from 20 to 13 and recently to Jan 8s. Based upon my ANR, FLSR, FB, and LVS (also getting killed afterhours) puts , I think its a lot easier to ID the companies with bad business models than good ones.
CAN YOU SAY CRUSHED?
SWING BATTA BATTA
NICE TO KNOW YOU, GOODBYE
Down 40%
Who bought at 15? Who owns now (according to Yahoo)
http://finance.yahoo.com/q/mh?s=ZNGA+Major+Holders
DST couldnt give a shit about the price: their basis is so low that a sub-penny price could come close to rendering the investment breakeven ...
This will usher in the deflation you have all been waiting for. Any minute now....deflation....here it comes....
...any minute now....
Yes, I suspect the price of shitty social networked video games is about fall significantly.
It seems the drought conditions around the world have hit the virtual farms too.
I don't throw 15 year-old girl acronyms around lightly, but ROFL!!!
You can thank your son for the more and more frequent puking-up-blood episodes.
Just sayin'
Zynga, it was nice knowin' ya..........
Ya know, last night I played Zynga No Limit Texas Hold 'em for the 1st time in 4 months. Coincidence? I think not...
Looks like Farmville needs to implement a virtual PIK program. Pronto.
What? How can a debt-deflation spiral not be lucrative for virtual farming margins?
Un·fath·om·a·ble, is what it is.
I have no idea what Zynga is but Faceplant is a piece of shit. I assume Zynga is the same
They make "Skinner Boxes" in the form of social media games.
http://www.theatlantic.com/technology/archive/2012/01/the-zynga-abyss/25...
Oh, and if you show this article to the click-junkies, they'll just laugh it off.
And keep on clicking, hoping that the next click brings their reward.
Being unfamiliar with Farmville, I read the article. Within was this line: "...cleverly-timed crop cycles force players to return to their farms at all times of day." Then I began to wonder: is ZH the financial-universe equivalent? As in "Cleverly timed new articles force readers to return to ZH at all times of day."
Is ZH a Skinner Box? An avid info-junkie, I know I'm hooked.
For those unfamiliar, this will explain it all. Enjoys the LULZ....
http://www.bogost.com/games/cow_clicker.shtml
How can people not see that this is DotCom bubble 2.0^x where x=infinity??? zyngas, shmingas, facebooks, and all the rest social media, internet 2.0, blah blah blah blah blah yada yada yada yada companies are nothing more that another bubble...
This will cause in even greater rally in Treasuries, and the "Metrosexual Glam Stocks" like PNRA, Under Armor, etc. will be unfazed by this news.
I still see EUR/USD pinned near the highs of the day, pending the "surprise announcement" coming in the morning.
"...and jetsetting tech plays like PCLN are still...um...what the...oh shit!"
What do you think the difference is between zynga and treasuries?
Touche.
+1
Headshot.
Wait until the Under Armour channel stuffing catches up later this year. Kevin Plank is a good guy, but he really has more in common with Kermit the Frog. He's a muppet CEO who has lost total control over his company. The directors control the company and most of them have never even worked in sporting goods. Their products are designed by people with no experience in designing sporting goods, that try to copy others success. UA has become nothing but a stock scam.
I'll clue you in how retail works Robo, even though you probably don't care. It is a Ponzi that will come crashing down very soon.
See a company like UA produces more inventory than consumers can ever buy. That isn't a problem though,consumers aren't meant to buy more than 20% of what gets produced. Dick's and the other retailers buy hundreds of millions in UA products, and it gets recorded as a sale for the next quarter. The retail directors all buy UA stock through proxies and they know what the sales are going to be. UA has a good quarter and the stock goes up, everyone is happy. At the end of the quarter UA takes back the product that didn't sell, to record as a loss at tax time. Ever wonder how a store can have 50 pairs of UA shoes one day and then not have any the next? They weren't sold. It gets sent back and UA issues a credit for future orders.
UA takes back product to sell in outlets or pass off to international wholesalers, mostly based in Russia. The product is usually sold at cost or a little above. What isn't sold off sometims makes its way back into the wholesale inventory that gets sold to other retailers. Remember the product was already booked as sold once before. This time 100% of the sale can be booked as profit.
What is kind of funny is that some of the product transferred to the international wholesalers finds its way back to the US after being sold to black market dealers. UA claims this is counterfeit product, even though it's not.
As long as UA can show revenue growth they can borrow more money to keep the Ponzi going. The problems start to show up in times like right now were almost no inventory gets sold to consumers. Without being able to sell something, the retail buyers don't have the cash to purchase the channel stuffed inventory in the first place and have to cut back, leaving UA with too much back inventory. This happened before when the economy turned south and UA kicked the bucket for a while.
Dang this is better than investment banking. Sign me up!
I note with great interest that you did not mention NFLX.
someone just got smoked....http://www.schaeffersresearch.com/marketcenters/optionscenter/content/zy...
I thought agriculture prices were going up...
Oh, farmville is a VIRTUAL farm. Got it.
don't have a STUPID flopbook account
= don't play STUPID video games = WASTE of time...but i'll gladly buy FB in the low 20s and sell in the mid-twenties...where is the bottom?? who knows??? $3.00??
you can still make $ on MASSIVE sell-offs...AH @ $27 = NOT A SELL-OFF.
Long AT&T stock, call volume will be up in the morning with all those margin calls.
Damn, I'm not done with Hidden Chronicles yet.
Is it Friday? I always thought the zynga thing was a joke you talked about on this site. You can't be serious that this is traded on the stock exchange? Please, tell me I am dreaming.
Wakey-wakey!
Virtual "farmville fresh" eggs and bakey!
Damn, this virtual martini tastes good.
Hahahahahahahahah!
Whole Foods up 10% after hours, crazed bots are gunning that thing all over the place.
$10 to $85 in 3 1/2 yrs. not bad.
How did NFLX fair today?
It got grouponed by crapple.
Mupple.
Another broken business that I follow. My Aug 65 puts are suddenly deep ITM. $80 tp $60 over one day, with more carnage to come. With the audit the fed passing with a greater than 2/3 majority I'm having a great week so far.
@RobotTrader
I suggest now might be a good time to short it for the round trip back to $10.
Robot I have been telling you to buy WFM since I got here.
LizardBut,
I am surprised that you have any of your mama's meney to throw at momo stocks.
You are just the type of person who will faceplant the sidewalk when the new 1929 occurs.
sandy weil (citibank "EMPEROR")
is he still holding to his citibank stock that peaked in the $60s or so..and NOW @ $2.5 (10X reverse split adjusted)
Is he the IDIOT-the so-called "postman", is he the idiot that told his "analysts" = paid cheerleaders, to "TAKE A FRESH LOOK" at those IPOs and slap them with BUY RATINGS?
he pushed for the repeal of glass-steagall in 1999 during CLINTOMICS, i didn't have sex with that 300 lb walrus....FREAKING IDIOT !!!!!
NOW !!! he says: break up the banks...well you know "hindsight is 20-20" who could of THUNK it...NOT the folks of the 1930s with the glass-steagall act to CONTROL GREED!!!
Long at 15.91
Zynga $14 to $3 in just a few months.
Are you guys sure that this isn't a junior mining stock?
LOL....
Nope not a mining stock...just another piece of shit like all the other momo's you tout.
Which stocks are bigger POS plays?
Junior mining stocks or these airball "concept" tech stocks? Both are pretty bad to me.
And I never recommend any stocks outside the S & P 500, but I may comment on the hot mo-mo plays from time to time.
And your current recommendations are..............?
My last recommendation was JNJ a month ago when it was at $64
My current recommendation is PG at $64.
Both pay decent dividends, which is what I play most of the time.
RobotTrader's Theme: http://www.youtube.com/watch?v=TT9VXxuc0LE
Strange day to mention the juniors as GDXJ was up 3.77% today.
LizardBut,
I am surprised that you have any of your mama's money to throw at momo stocks.
You are just the type of person who will faceplant the sidewalk when the new 1929 occurs.
You're so fucking full of shit, momo faker. When are you going to admit pumping TZOO, NFLX, CMG? Just fucking kill yourself.
Stop playing with your machine! You'll go blind or something. You are talking back to a bot that isn't as smart as your car key.
Deuoooooosche
I think capital destruction when I think internet stocks.
LOL - HAHAHA, yeah soooooo Funny!
Now that is an idea..... a virtual junior mining stock... this has potential.... where is NIA????
You made a funny!
I'm very surprised you weren't crushed by this ...
A worthless equity that doesn't make any money is just the sort of thing you usually push!
Crop failure on the virtual farm.
I blame the lack of rain.
People are actually going outside this summer.
ZingedYa could not run an online database to maintain its DrawSomething teaser game, a sure short signal they were not a real business with resources to make money.
Flashback to the song Short People by Randy Newman... he Zyngah!
Game Over
It is about time to bail out the virtual: Zynga, Facebook, the EU
LOL - EU is a bunch of zeros and ones in the cloud.
Not the brightest business model. Everyone knows that if you want to invest in virtual farming, you need to have a chinese MMORPG gold farming company! World of Warcraft anyone?
Harro? Ret me speak to Mistah Zuckeeburp, prease.
Anything about the Founder Pincus who cashed in on the IPO , sold a soon to be worthless company aided and abetted by the utter criminals at the IBs - This thing makes me outraged... Talk about ill gotten gains.
Like health insurance; require people to use social media.
Come up with a Doctor game where citizens learn how to treat themselves for cheap while floating social media equities.
Feed them with virtual crops, and pay them with increases in EBT balances.
Do I get to be the virtual insurance company that looks for any way possible not to pay a claim? Or a virtual quack that diagnoses 80% of all children I see with ADHD and prescribes them meds?
I'll take virtual pharma. Think I'll call it "Pharmville"..
Somebody call John Mellencamp.
In the race to hit 0 first my money is still on GroupOn...perhaps the biggest piece of shit to ever go public.
Is it under a dollar yet? I might buy in just for laughs.
My kids used to play farmville a lot. I notice they no longer do. Interesting, and predictable. Because they have no practical value these things are only interesting for a little while.
My wife only goes back there when her Scrabble friends are lagging.
Zynga were scumbags who cheated, chintzed and ripped their competitors off. Couldn't have happened to be a better pack of swine.
Is it wrong that I'm LOVING this sh*t????
No, it's wrong if you're not lovin this shit.
Only if you bought Zynga at $12.
I hope CALPERS wasn't a buyer then, but they probably were.
You've been ZYNGED!
I should coin that.
Virtually vapor left after the vaporware company Zynga vaporized before my very eyes.
which "GENIUSES"
bought this piece of garbage PENNY STOCK @ $15 and is still holding @ $3?? DONTCHA KNOW?? Dr. sheldon Cooper from THE BIG BANG tv show said:
BAZINGA!! = he's joking
ZNGA is a buy @ $15 = BAZINGA!!!!
LOL !!!!
Signs that the denial stage is ending. Things are going to get real bumpy later on. Anger
Time to Zynga short FB
Zynga, a pimple on facebook
Ba Zynga.Another of Sheldon's classic pranks.
Only when you loose everything, are you free to do anything.....
zyngamagic anyone ?
People are going through social fatigue. It was cool to be able to connect wih people you haven't seen for years, after a short while it became retarded to let people you haven't seen in years know you went to the mall yesterday.
Eventually people also get tired of being told what is important by a hoodie wearing kid that looks like the guy that used to get pants everyday at the bus stop.
I agree with that furthermore people are getting concerned about their finances and lowering their lifestyles, even people in denial about what is going on in the world are concerned. To your point people are bored with social media that spies on you and markets crap to you when they have bigger issues to be concerned with.
What is this about pants at a bus stop, I've never heard of this before?
I'd agree whole-heartedly with that view. My wife and I are buying very little, only necessities. I am paying as much extra on the two vehicle payments as I can to get them paid off early. Original pay off date on both was DEC. 2015, but both will be paid off by this time next year. ;-)
Then all I have left is the house payment. All the money saved on not having the vehicle payments goes under the mattress. Double ;-)
Don't know what Zynga is, and have never done Face Plant. My cell phone is just that, a frikkin phone. No games, no online stuff, a phone. It'a all I want, nothing more.
Gonna go buy me some more .45 ACP ammunition this weekend though. I put it in ziploc bags with a desiccant pack to keep it all dry.
A Yahoo search brings up articles on chicks peeing their pants at bus stops.
No fooling! ;-)
http://search.yahoo.com/search;_ylt=AjLUgiOieLV6mAKnbyEcH6WbvZx4?p=pants+at+a+bus+stop&toggle=1&cop=mss&ei=UTF-8&fr=yfp-t-701
So, is Schrodingers' cat finally and permanentlty dead?
One of the more delicious parts of this story is Margin Stanley owning 13.84% of Zynga.
Dopes.
MS is up over 3% today. Go figure.
fuck zynga. fuck all those computergames. fuck that virtual fake world, where nothing ever realy happens.
All any of this stuff does is dumb you down, spy on you, distract you and make you buy stuff you don't need, sometimes its all three.
I will get my ZH updates via their telex service.
They'll earn approx 7 cents a share for this year so on the bright side its now "only" trading at a 40x multiple of this year's earnings, it only has to lose another 75% of share price to become a potential buy (if you believe that 7 cents a share earnings and all).
These Zynga-type sites remind of the time "pet rocks" were in vogue back in the day. Whudda thunk it?
Lol zynga is so tragic because it was mom and pop who got blown up, magically some people still believe wallstreet shysters when they roll round shouting, NEXT BIG THING TECH STOCK, TECH CAN HAVE CRAZY EARNINGS RATIOS THATS NORMAL FOR TECH, although we all know it cant
Doesn't Zynga have a Zynga FED where they can just print more of those Zynga dollars out of Zynga thin air? Print more!!
(Instagram does know that FB is paying in Zynga bucks, don't they?)
Maybe they will just include virtual farmers in the subsidys and special income tax treatment for real farmers? But only if you raise the right crop of friends on Facebook.
GarbageVille
Thanks ZH for letting me know that I am not alone in knowing the true value of virtual goods (not everyone knows this yet since ZNGA is above 0.00 =S ).
Anyone want to donate a cow ???