Zagg ( ZAGG) doesn't own a social networking Web site but is a strong derivative play off of the social networking boom. This company 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 bullish start in 2012, with shares up over 50%. Zagg has a market cap of $331 million and an enterprise value of $356 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 16.69 and a forward price-to-earnings of 10.74. Its estimated growth rate for this year is 39.7%, and for next year it's pegged at 25.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $16.86 million and its total debt is 42.63 million. If Facebook and other social networking Web sites can continue to grow and see increased usage from consumers, then companies like Zagg are going to benefit in a big way. Consumers want to have access to their Facebook accounts on the go, so the use of mobile devices via apps is exploding. Facebook recently said that around 500 million people log into its site with smartphones and tablets. That's more than half its users. Zagg is well-positioned to sell those 500 million users protective coverings for their mobile devices. >>5 Stocks That Insiders Love Right Now Zagg recently reported record first-quarter results that showed a 106% increase in revenue to $55.5 million from $27 million in the same quarter last year. Zagg is well-positioned into the social networking ecosystem since its products are complementary to the exact devices that are accessing the top social networking sites like Facebook and Twitter. In fact, Zagg's products are a must if you want to keep your mobile devices in good shape. I use its products on both my iPhone and iPad, and I regularly access social networking sites on both. Traders should look for long-biased trades in ZAGG once it clears its 200-day moving average of $11.23 with high volume. Look for volume on that move that's near or well above its three-month average action of 1.2 million shares. If we get that move, then ZAGG can easily spike back towards its May highs of $12.75 to $13.29 a share if not much higher. This is yet another heavily shorted Facebook IPO play since 43.7% of ZAGG's float is sold short by the bears. If the big traders decided to rotate into Facebook derivative plays like ZAGG -- which I think they will -- then we could easily see a monster short-squeeze if the IPO is a smash.