Tuesday’s biggest gaining and declining stocks

Palm Beach, FL 5/8/12 (StreetBeat) -- The following companies made notable moves in U.S. trading on Tuesday:

Gainers

FreightCar America Inc. (Nasdaq: RAIL +2.55%) rose 10% after the firm said Tuesday that its first-quarter profit came in at about $10 million, or 81 cents, versus a $1.3 million, or 11 cents a share, loss a year ago.

GTX Inc. (Nasdaq: GTXI +14.52%) rose 15% after it said the U.S. Food and Drug Administration has lifted its hold on clinical trials for the potential advanced prostate cancer and hormonal treatment Capesaris.

Decliners

Electronic Arts Inc. (Nasdaq: EA -6.87%) declined 5%. The game maker said it expects fiscal first-quarter adjusted revenue of $500 million on an adjusted loss of 40 cents to 45 cents a share. Analysts polled by FactSet Research were looking for a loss of 33 cents a share on $581 million in revenue.

Shares of Fossil Inc. (Nasdaq: FOSL -32.93%) fell more than 29% after the firm said its first-quarter earnings rose 4.2%, but a softening European economy contributed to the watch and fashion-accessories retailer’s slower-than-expected sales growth.

Mako Surgical Corp. (Nasdaq: MAKO -36.50%) dropped 37% after the surgical products maker said its first-quarter results came in at the low end of expectations. The company also pared back its 2012 sales projections for its key robotic arm systems to a range of 52 to 58, down from its earlier forecast of 56 to 62 systems.

Rackspace Hosting Inc.’s (NYSE: RAX -12.79%) shares dropped 14% after the company’s first-quarter earnings of 17 cents a share came in a penny below Wall Street’s projection.

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Zynga Inc (Nasdaq: ZNGA) Raises $1 Billion in IPO

Tallahassee, FL 12/16/11 (StreetBeat) --Zynga Inc. (Nasdaq: ZNGA) raised $1 billion in its initial public offering, pricing shares at the top of its marketed range.

The developer of such popular games as CityVille, FarmVille, and Mafia Wars sold 100 million shares for $10 each. Zynga had offered the stock for $8.50 to $10 a share. It will start trading today on the Nasdaq under the symbol ZNGA.

Zynga’s is the biggest offering by an American Internet company since Google (Nasdaq: GOOG) raised $1.9 billion in its 2004 IPO. It planned to offer about 14 percent of its common stock, according to a regulatory filing. Other Internet companies making their public debuts this year — Groupon , LinkedIn , and Pandora — offered less than 10 percent, using smaller free floats to boost initial demand for their stock, pushing the price higher.

Founded in 2007 by CEO Mark Pincus, Zynga doubled sales to $829 million in the first nine months of 2011. The IPO values Zynga at as much as $7 billion, or 6.8 times revenue in the year through September 30. Rival Electronic Arts (Nasdaq: ERTS) has a market value of $6.9 billion, or about 1.8 times sales.

The game maker’s increasing ubiquity and expansion prospects appeals to investors, said Colin Sebastian, an analyst at Robert W. Baird & Co. in San Francisco.

“Zynga and its games are becoming consumer brands and there is a lot of recognition for growth potential,” he said. “My guess is that the shares will be well-received.”

Zynga planned to sell all of the shares in the IPO, and to use the net proceeds, or about $889 million, for game development, marketing, and general corporate purposes.

Zynga gets more than 90 percent of its revenue from Facebook , which is currently preparing for its own IPO, which could value the company at more than $100 billion, a person with knowledge of the matter said last month.

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Zynga IPO Values Company as High as $9.04 Billion

Tallahassee, FL 12/2/11 (StreetBeat) -- Zynga Inc plans to sell an 11.1 percent stake in a scaled-back initial public offering that would value the Facebook game maker at as much as $9 billion on a fully diluted basis. The leading social games maker plans to sell 100 million new shares at between $8.50 and $10 each, according to a U.S. regulatory filing on Friday. At the midpoint price, the IPO could raise $925 million, which would make it the largest from a U.S. Internet company since Google Inc (Nasdaq:GOOG) raised $1.7 billion in 2004.

Five-year-old Zynga made its name on viral games such as "FarmVille," among the most popular on the Facebook social network. While Zynga's games are free to play, the company makes money from selling virtual items -- such as tractors and weapons -- that players then use.

Based on a fully diluted share count of 904 million, which includes existing shares and stock options, the IPO price values Zynga at $7.7 billion to $9.04 billion. In a filing two weeks ago, the company said a third-party analysis had valued it at $14.05 billion. While the valuation has been cut, Zynga would still be among the largest publicly traded U.S. game developers after it debuts on Nasdaq under the "ZNGA" symbol.

Video game developer Activision Blizzard Inc (Nasdaq:ATVI) currently has the industry's highest market value of $14.2 billion, followed by Electronic Arts Inc (Nasdaq:ERTS) at $7.7 billion.

Zynga's debut will follow IPOs this year from Groupon Inc (Nasdaq:GRPN) and LinkedIn Corp (NYSE:LNKD), which helped revive a market that had sputtered in recent years. Facebook is gearing up to go public next year.

Mark Pincus, a serial entrepreneur before he founded Zynga, will hold a class of shares with 70 times more voting power than the regular stock that will be sold in the offering.

Google, one of the early investors in Zynga, will be offering about 1.7 million shares, according to a regulatory filing. Other companies selling shares include Institutional Venture Partners and Union Square Ventures. Deep-pocketed rivals from Walt Disney Co (NYSE:DIS) to Electronic Arts are starting to muscle in on Zynga's turf.

The company said its IPO represented 14.3 percent of 699 million common shares, excluding restricted stock.

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Zumba Fitness Craze Makes Majesco Entertainment Stock Look Undervalued

Austin, TX 11/18/11 (StreetBeat) --Majesco Entertainment (Nasdaq: COOL) is a small capitalization video game maker who specializes in motion captured games as well as games for handheld devices and social platforms like Facebook. It is today’s release of Zumba Fitness 2 that brings me to write about Majesco stock.

Majesco Entertainment has been around since 1986 and has just recently this year had a string of success. Cooking Mama, a tycoon like game for Nintendo DS, was the first game to really get the company going again in the 2000s and helped the company gain entry into today’s video game market. The biggest success now for the company is the Zumba franchise. Video game companies continue to put out interactive games to give users the full experience with the Nintendo (NTDOF.PK) Wii and Kinect from XBOX. Games like Wii Fit, Just Dance, Wii Sports, and now Zumba Fitness have helped users interact with their games while also getting some sort of workout while playing video games.

Zumba Fitness has sold over four million copies worldwide. The game is actually selling faster than several debut games from popular series including Guitar Hero. The newest version of the game features twenty four different types of dances and a whole new soundtrack. Players of the game will be able to track calories burned for the first time on screen. Zumba Fitness Rush will be released for XBOX 360 exclusively in February of 2012. The Zumba games previously were only available on the Nintendo Wii.

The last earnings report put out by Majesco for the third quarter showed earnings per share of $0.04 (up from a loss of -$0.03 last year third quarter). The company raised guidance of $0.35 to $0.38 for the fiscal year ending October 31st, 2011.

The lineup for the rest of 2011 looks promising for Majesco Entertainment.

-Hulk Hogan’s Main Event -the first motion controlled wrestling video game.

-Twister Mania-interactive party game for Kinect

-Alvin and the Chipmunks:Chipwrecked-For Kinect, Nintendo DS, and Nintendo Wii, features 30 songs and corresponds with the launch of the newest Alvin and the Chipmunks movie in December, 2011

-Motion Explosion-interactive family game

-Several games for the Nintendo DS including Camping Mama, Cooking Mama 4, Jaw, Pet Zombies

Just like other video game makers, Majesco is trying to increase its presence in social gaming through Facebook. An acquisition of Quick Hit this past year showed the seriousness of Majesco’s intentions on social media. This past quarter several games were released on Facebook for Majesco including: Quick Hit NFL, Parking Wars 2, and the latest Cooking Mama social game.

The Zumba Fitness game is sold overseas by various other companies through a license with Majesco Entertainment. The game is a bestseller in other countries as well and has been on the bestselling list in the United Kingdom for some time now.

Shares sold for less than $1 at the beginning of 2011 and have since rose up nicely to its current mark between $3 and $4. With earnings of $0.35 for this year, shares trade at less than 10x earnings per share. This nice small cap stock looks to be undervalued. If the company can continue to sell Zumba Fitness 2 well or turn out more games it could be a great growth stock and increase up to $10. I think before this happens the company will be bought out. Large video game companies like Activision (ATVI) and Electronic Arts (ERTS) are always looking for ways to strengthen their portfolio. I would be curious to see if Activision, who abandoned their once fad game Guitar Hero would be interested in taking on the current video game trend once again.

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