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Another stock that could see some big interest in front of the Zynga IPO is Zagg ( ZAGG), which designs, manufactures and distributes protective coverings, audio accessories and power solutions for consumer electronic and hand-held devices under the brand names invisibleSHIELD, ZAGGaudio and ZAGGskins. This stock is off to a solid start in 2011, with shares up around 30%.

I know this is far from a pure play on the video game sector or the social gaming sector for that matter, but I do see plenty of synergies that make Zagg very attractive here. As more people play games on their iPhones, iPads and Android devices, the more wear and tear there will be to those devices. This should result in more sales for Zagg as consumers look to buy their protective covering products to help make their devices last longer. Just consider a recent report from IHS Screen Digest that said the social gaming market for 2010 more than doubled revenues from 2009. It grew at an amazing rate of 116.5% to $1.4 billion, according to IHS.

Zynga was the leader of the pack, commanding 39.1% of the overall market share. The take away here is that social gaming is a booming trend with no signs of slowing. This means more iPhones, iPads and other smartphones are going to be bought to satisfy that huge appetite for social gaming. Zagg is sitting in the sweet spot to benefit off this trend, since consumers will spend more time on these devices playing games. More time means more wear, which means Zagg sales will boom.

From a technical standpoint, I would be a buyer of this stock once it takes out some major overhead resistance at around $10.59 a share on strong volume that's greater than 1.2 million (three-month average volume). I would look to buy this stock on any weakness in anticipation of that breakout, and use a stop just below $8.50 or even the 50-day moving average of $8.30 a share.

This stock has a ridiculously high short interest with over 50% of the float current sold short by the bears. The short-sellers have also been increasing their bets from the last reporting period by around 6.1%, or by around 500,000 shares. This is the last stock in the world I would want to be short if it breaks out, since the tradable float is only 17.64 million shares. This stock could easily double from here.

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