Classic Bull Flag Pattern in the online gaming stock Zynga (ZNGA), the flag pole projects that this stock should go to over $6 in the next 3 to 4 months. I think this is very likely since Zynga has a lot of potential catalysts to push the stock higher including they a new game coming out, and the company’s entrance into the potentially lucrative online poker market. More importantly Zynga is the perfect stock to play the technology sector since it has the combination of a high market cap ($2.5 Billion) and high trading volume (more than 30 million shares a day) combined with a low price at $3.45 and lots of volatility so that if the tech sector and the Nasdaq 100 keeps rising this stock should easily hit the $5 or $6 mark, producing a 50% to 75% return. Also Zynga has limited downside with almost zero debt and over $1.2Billion in cash, meaning half the company’s market cap is cash.
Editor of the Billionaires Portfolio