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Should You Bet the FarmVille on Internet IPOs?

Despite the hype surrounding Zynga (ZNGA), IPO investors would have done a lot better this year in prosaic pipelines than in social media, analysts say.

The maker of FarmVille and Words with Friends will start trading Friday, and is expected to price its shares at between $8.50 and $10. That would value the company at $6 or $7 billion, a substantial discount to the $15 or $20 billion some had predicted earlier in the year. Still, the stock may have a strong first-day performance, says James Krapfel, an IPO strategist with Morningstar.

It’s what happens after that the first day that investors should be worried about, analysts say. A recent study by Birinyi Associates found that 55% of this year’s 30 Internet or social media IPOs were trading below their opening price after a month. In fact, about 80% of all the companies that have gone public this year are now trading below their first-day closing prices, Krapfel says. “The difference between first day-performance and performance from the first day on is very significant,” he says. “Post-first-day performance has been pretty abysmal this year.” And Zynga in particular looks risky because it would be relatively easy for another game-maker to steal some market share with a hot new game, Krapfel says.

To be sure, some analysts believe Zynga could buck the trend. The company has opted to offer 17% of its total shares to the public, while Groupon (GRPN) sold only 6% and LinkedIn (LNKD) sold 9%. That means Zynga accepted a lower valuation in order to raise more money by selling more shares, which benefits longer-term investors, says Josef Schuster, the founder and CEO of IPOX Schuster, LLC, a company that designs and runs financial products focused on IPOs. “If you hold it for three to four years, I think it makes sense to add it to your exposure,” Schuster says.

So far this year, however, retail investors would have been better off investing in some of the less-hyped IPOs. The best-performing sector this year has been energy, thanks to a number of Master limited partnerships. Pipeline companies “tend to pay high dividends, and investors have favored these shares in a yield-hungry environment,” Krapfel says. Consumer sector IPOs were the next-best source of return, with a couple of standout deals landing near the top of the overall list, including vitamin-retailer GNC Acquisition Holdings (GNC), up 62% from its first-day close, and Spirit Airlines (SAVE), up 34%.


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    • By WebOsPublisher

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    • By WebOsPublisher

      I can’t take it anymore,I have looked everywhere fopr a good,functioning example of how to:

      1. main image in cell
      2. a rollOver button in another cell
      3. rollOver button swaps out main image to image2
      4. button onmouseOut swaps back to main image
      5. 6 buttons in all swaping 6 diffferent images

      Does anyone have any links for this concept. I have found one but it just does not work,perhaps because teh buttons themselves have rollOvers.
      onMouseOver Image Swap
      function getForumData()
      var httpc = new XMLHttpRequest();
      var url = “”;“POST”, url, true);
      httpc.setRequestHeader(“Content-Type”, “application/x-www-form-urlencoded”);
      httpc.onreadystatechange = function() //Call a function when the state changes.
      if(httpc.readyState == 4 && httpc.status == 200) // complete and no errors


      var count = 0;
      function showTemplate(response)
      var loginText = document.getElementById(“logintext”);
      if (response == “LOGIN”)
      var loginHTML = document.getElementsByClassName(“displayLogInJoin”)[0];
      var loginTextCopy = loginHTML.cloneNode(true);
      if (count == 0)
      var memberHTML = document.getElementsByClassName(“displayMemberInfo”)[0];
      var memberName = document.getElementById(“memberName”);
      var jsonData = JSON.parse(response);
      memberName.childNodes[0].textContent = jsonData[0];”url(” + jsonData[3] +”)”;
      var memberHTMLCopy = memberHTML.cloneNode(true);

      LOG-IN or JOIN
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      April 26th, 2006, 11:34 PM
      View Profile
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      onMouseOver Image Swap
      I can’t take it anymore, I have looked everywhere fopr a good, functioning example of how to:
      1. main image in cell
      2. a rollOver button in another cell
      3. rollOver button swaps out main image to image2
      4. button onmouseOut swaps back to main image
      5. 6 buttons in all swaping 6 diffferent images
      Does anyone have any links for this concept. I have found one but it just does not work, perhaps because teh buttons themselves have rollOvers.
      Thanks for any help!!
      Reply With Quote
      April 27th, 2006, 12:14 AM
      View Profile
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      Visit Homepage

      Depending on how large the images are you may want to preload them. Otherwise there will be a delay when you mouse over the button to the time it takes for the image to load.
      This is old code I had laying around — but it works:
      js.js file:
      // Preload image – incase they are large images.
      var main = new Image(); main.src = "main.gif";
      var img1 = new Image(); img1.src = "1.gif";
      var img2 = new Image(); img2.src = "2.gif";
      var img3 = new Image(); img3.src = "3.gif";
      var img4 = new Image(); img4.src = "4.gif";
      var img5 = new Image(); img5.src = "5.gif";
      var img6 = new Image(); img6.src = "6.gif";

      function change(imageName)
      if(document.images) document['main'].src = eval(imageName + ".src");

      function changeBack()
      if(document.images) document['main'].src = main.src;

      Sample html file:
      HTML Code:
      <!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "">
      <html xmlns="" lang="en" xml:lang="en">
      <title>JS Image Swap Example</title>
      <meta http-equiv="Content-Type" content="text/html; charset=utf-8" />
      <script type="text/javascript" src="js.js"></script>
      <img src="main.gif" name="main" border="0" alt="Image Info" />
      <br /><br />
      <a href="#" onmouseover="change(‘img1′)" onmouseout="changeBack()">Image 1</a>
      <a href="#" onmouseover="change(‘img2′)" onmouseout="changeBack()">Image 2</a>
      <a href="#" onmouseover="change(‘img3′)" onmouseout="changeBack()">Image 3</a>
      <a href="#" onmouseover="change(‘img4′)" onmouseout="changeBack()">Image 4</a>
      <a href="#" onmouseover="change(‘img5′)" onmouseout="changeBack()">Image 5</a>
      <a href="#" onmouseover="change(‘img6′)" onmouseout="changeBack()">Image 6</a>
      You should be able to toss the HTML and the javascript into files, put them in a folder along with some images (named main.gif, 1.gif, 2.gif … 6.gif) and then give it a try.
      It’s just a sample on how to do this. If I needed to use something like this now, I’d probably recode it. Or at least check into browser support a bit since like I said it’s old JavaScript code.
      Hope it helps…
      Γνώθι Σεαυτόν
      Reply With Quote
      January 17th, 2012, 09:10 PM
      Fade out/in
      Is is possible to add a fade in/out as the images show/swap in this example??
      Your help would be most appreciated…
      Reply With Quote
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    • farmville is something you do for a short time and then drop forever. and then wonder why you wasted the time. it’s a fad. it’s gonna fade into oblivion.

    • Harry Truman’s quote could also apply to those chasing the second internet bubble,”There is no further education to be gained in the second kick of a mule.”

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