Zynga isn't considering a dividend, much less paying one. Zynga has many shareholders who are mentally coming to grips with the fact their investment is worth 20% less today than it was only a few days ago.Įven if Apple doesn't technically close higher, Apple has a strong dividend that pays shareholders to sit on their hands. When stocks implode from damaging news, quick sellers leave because they fear a trend continuation. The next thing that investors want to keep in mind is that a strong first move is usually the right move. Many funds won't consider stocks under $5 (with good reason), and the likelihood of finding a stock that falls below $5 on an analyst upgrade list is about as high as my ability to log into Facebook without countless annoying invites to play "Bubble Safari" or some other online game. In turn, some investors will need to liquidate shares, add more money or a combination of both. Many brokers do not allow low-priced stocks to be sold on margin. Usually there's a compelling reason why stocks fall under $5 a share, and all sorts of negatives are triggered. The first thing to keep in mind is that any stock trading under $5 should first be treated as a bankruptcy candidate. NEW YORK ( TheStreet) - After Znyga announced cost reductions resulting from laying off over 500 employees (18% of the workforce) is it time to buy the stock? The short answer is no, the shares aren't cheap enough to justify the risk.
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