I got two stocks to talk to you about: Zynga Inc. (ZNGA), and LipoScience Inc. (LPDX).
ZNGA: Zynga is game/app developer for Facebook, Apple iOS, Google Android and the the liking. They have come out with hits like FarmVille (1&2), Words With Friends, Draw Something, Mafia Wars, and the most interesting Zynga Poker. Since the beginning of the year they have secured 30+ patents and filed paperwork to make Zynga Poker, a legitimate online/social media casino. This would be the first of the kind and they already have a strong user base. It will be at least a year or two to see it come together, but I think it is time to jump on board. My opinion is that it is pure genius to combine the addicting characteristics of smart phones and Facebook to the very real addiction of online poker.
The downsides is that they reduced 5% of their work force back in October which caused their stock to drop to about $2-$3. However, with this new strategy and having nearly the same sized R&D team as Electronic Arts (“EA sports, its in the game”). They are still rolling out very profitable games at the very least.
Today, it has jumped quite a bit (9%-11% since opening) so I don’t think you should out the order in it just yet. Pay attention tomorrow. Sometimes the guys that jumped on it today, will sell tomorrow to make use of the quick gains.
LPDX: LipoScience, Inc. is a medical device company. They produce tests that deal with heat disease and diabetes. They have only been trading two days since they had their IPO on friday. I think this is a good sign. The reason why I think you should invest into this one this week is that it is a medical company who’s value is not fully appreciated yet. They should be around for a long time and can really only increase in value and should produce dividends (good for you when you get older).
ZNGA’s share price is right above rock bottom. From what I have read, these apps alone are valved more than that and it is due to the “reducing of staff” overreaction. Keep your eye on it and see if you can get it at $2.60 or $2.65 (That’s what I paid for it).
For LPDX, they are hovering around $11. I think this is a decent price. I wouldn’t expect this company to make huge changes overnight and should be a pretty good steady climber over the months and years. These are both smaller companies, but they both have huge potentials to grow. It is a young medical company and a young software developer, which should also add some diversity to your portfolio.
Let me know your thoughts.