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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

The CEO Shafted Me, But I'm Still Buying His Stock

NEW YORK (TheStreet) -- I make it a point to not pass judgment on another person's intent.

That's why, even though I grow more angry with him by the day, I continue to give Zynga (ZNGA) CEO Mark Pincus the benefit of the doubt.

Absent inside information and a line into his recent psychological processes, it's pretty much impossible to know if Pincus acted inappropriately or, even worse, illegally prior to his stock's plunge to sub-$3 territory.

When I watch a so-called dirty hit in hockey, for example, I cringe at the ensuing suspension. Often, it results not from some obvious transgression or a serious injury, but from what sports leagues call "intent to injure." How in the world can a league official know what a player was thinking in the split second when he checked another player into the boards?

They can't. It's just not possible. The subjective game of assigning intent to an athlete or CEO puts the accuser in somewhat dangerous territory.

With that said, it's tough to not haul off and verbally smack Pincus upside the head. Let's review what we have seen from the Zynga CEO over the last several months. Pincus, along with other insiders, sold ZNGA stock at $12 a share prior to the company's lockup expiration, after a first-quarter earnings beat and one day into the second quarter, which would end up being a beyond-disastrous quarter for Zynga.

But here again, unless you're an insider, you do not know what they knew. It's not simply that I refuse to assign intent, but I have a difficult time thinking that people, even big banks, could perpetrate such downright evil.

I'm not sure Zynga executives were acting shady; instead, investors should be more concerned with how incredibly clueless management was as Q1 turned into Q2.

It's easy to get angry, though. Right around this time, Pincus sold two San Francisco homes for $1.9 million and $8.2 million. He then turned around, quite possibly using a chunk of the $200 million he collected in the secondary offering, to pick up a $16 million 11,500-square-foot mansion in Pacific Heights.

The sky was falling. But Pincus was living the dream. He was picking out the perfect bidet, while ZNGA longs, myself included, were about to lose our shirts on his stock.

Stock quotes in this article: ZNGA, AAPL, FB, AMZN 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 16,262.56 +89.32 0.55%
S&P 500 1,842.98 +12.37 0.68%
NASDAQ 4,034.1610 +11.4670 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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