PPR - ZNGA pocket
ZNGA will achieve enough volume in today's trade for a pocket pivot.
The gap down after it reported earnings on February 14 was due to its announcement of an upcoming secondary offering. Most stocks will gap down on such news as it tends to have a dilutive effect on the price of the stock. That said, such offerings are not negative for a stock, but show the stock wishes to raise capital for expansion.
Institutions are jumping on board ZNGA, and sales growth is robust.
We hold a position in ZNGA.
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