This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

11 Stocks That Could Soar Off Zynga's IPO

Stocks in this article: GLUUCOOLMOBIZAGGYNDXLNKD

Majesco Entertainment

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Another gaming play that could soar in front of the potential Zynga IPO is Majesco Entertainment (COOL), a provider of video game products primarily for the family oriented, mass-market consumer. Majesco publishes games for numerous digital platforms, including mobile platforms such as the iPhone, iPad and iPod Touch, as well as online platforms. This stock is off to a huge start in 2011, with shares up over 280% -- as of the end of April, it was one of the 10 best-performing stocks under $5.

Majesco an extremely small company with a market cap of just $111 million and an enterprise value of $91 million. The stock trades at a trailing price-to-earnings of 51 and a forward price-to-earnings of 8. Majesco has around $7.89 million of cash on its balance sheet and only $84,000 in total debt. This company sells a number of games that are used on Facebook such as Bananagrams, Cooking Mama Friends' Cafe and Parking Wars 2. It also sells games used with smartphones such as KarmaStar and Gardening Mama.

From a technical standpoint, Majesco looks ready to move back above its 50-day moving average of $3.21 a share. Volume on Thursday was incredibly strong, with over 3.4 million shares traded vs. the three-month average activity of 1.5 million. One could buy this stock with a close above the 50-day and look for a run back toward its 52-week high of $4.15 a share. If my thesis plays out here, I think Majesco will take that 52-week out and potentially double.

The current short interest as a percentage of the float for Majesco is 6.9%. The bears have been increasing their bets from the last reporting period by around 5.7%, or by about 128,000 shares. We could easily get a solid short squeeze here with Majesco if the market decides to revalue all social gaming stocks much higher.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs