10/06/2013

So trying a new strategy, bet on the person, not the company. 

Zynga now has Don Mattrick who knows how to build a brand. He built the XBOX into the industry leader, coming from behind Sony's Playstation. He did it at a large company (Microsoft), where he probably had to make numerous strategic decisions, navigate politics, deal with pressure and execute. 

Before that, he started his own gaming company at the age 17, that was later acquired by Electronic Arts (EA) and became EA Canada. He had a pretty successful run at EA, bringing to life game franchises like Need For Speed.

This is a guy that has a track record for being successful. 

Also Zynga stock has been beaten down like crazy in the last year. On the flip side, since the appointment of Mattrick, the stock has had a really good run. Also, on the last conference call, Mattrick warned of volatility in the next year.

Overall, if you have the stomach for crazy stock churn, there is a strong possibility of huge returns here.

Disclosure: I have a LONG position in ZNGA.
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