Tag Archives: ZNGA
Zynga (ZNGA) is a leading provider of social game services with 240M average monthly active users over 175 countries. ZNGA was up 10.11% and closed at $3.93 on March 11, 2013. ZNGA had been trading in the range of $2.09-$14.48 in the past 52 weeks. ZNGA has a market cap of $3.08B. Since my last article of “Zynga: Ready For Real-Money Games And Improving On The Cost Side,” ZNGA had gained 38.38% with recent positive developments on online gambling and a buyout rumor.
On March 11, 2013, Wunderlich Securities analyst Blake Harper said that while last week’s speculation about Yahoo (YHOO) acquisitions focused on the reviews site Yelp Inc. (YELP) and reservations service OpenTable Inc. (OPEN), Zynga could make sense as a target, along with companies like the blogging service Tumblr and location app FourSquare. Harper further indicated that Yelp is the most attractive candidate as its market capitalization is half that of Zynga, where larger deals would be discouraged by Yahoo’s shareholders who want the company to focus on improving its core business.
News of a jump in Nevada gambling revenue and optimism about the possibility of legalized online gambling in New Jersey had boosted the share prices for casino companies on February 8, 2013. Some other gaming stocks are also benefiting from the increasing revenue in Macau. In this article, 4 gaming related stocks will be presented which are gaining positive momentum with unusual daily call options volume ratios. Unusual option activities can also be an indicator or precursor of a major movement for the underlying stock.
MGM Resorts International
MGM Resorts International (MGM) is a hospitality company, engaging in operation of casino resorts, which includes offering gaming, hotel, convention, dining, entertainment, retail and other resort amenities. MGM has two segments that are based on the regions, in which it operates: wholly owned domestic resorts and MGM China. MGM closed at $13.51 with 4.40% gain on February 8, 2013 and had a daily call volume ratio of 2.26. MGM had been trading in the range of $8.83-$14.94 in the past 52 weeks. MGM has a high beta of 3.68.
Fundamentally, MGM has an enterprise value of $17.59B with a market cap of $6.61B. MGM has a total cash of $2.56B with a total debt of $13.83B. MGM generates an operating cash flow of $1.08B with a levered free cash flow of $782.43M. MGM has an operating margin of 9.53% and a negative profit margin of -7.47%. MGM has a negative return on equity of -4.66%.
Technically, the MACD (12, 26, 9) is showing a slightly bearish trend, but the MACD Histogram is decreasing and could signal a bullish sign when turning positive. The momentum indicator, RSI (14), is indicating a strong buying momentum at 8.87. MGM is currently trading above its 50-day MA of $12.03 and 200-day MA of $10.97, as seen from the chart below.