Out Fox The $treet

  Zynga agrees to be bought by Take-Two Interactive at a disappointing valuation despite the deal premium. The new entity proposes a company rivaling EA trading at a major discount to the gaming giant. The new Take-Two will have appealing 14% growth rates plus $500 million in net bookings synergies in mobile. The stock will trade at a FY23 EV/S multiple of 3.5x, which is a major discount to past multiples. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » For long-term shareholders, the  Take-Two Interactive Software  ( TTWO ) deal to acquire  Zynga  ( ZNGA ) for $10 per share is a disappointing valuation considering the stock regularly traded above $11 last year. For short-term traders, the 64% premium provides a good time to exit the stock after a rough last few months. My  investment thesis  remains Bullish on the stock after the massive hit to Take-Two Interactive takes Zyng...

According to the Wall Street Journal, Take-Two Interactive (TTWO) is paying the NBA $1.1 billion over 7 years for the license to create NBA 2K. Clearly, the success of the franchise is always going to come at an ever increasing cost similar to TV deals with sports leagues.

Glu Mobile ( NASDAQ: GLUU     ) shares were absolutely clobbered after the third-quarter earnings report that easily beat estimates. On top of the beat, the mobile game developer increased guidance for the fourth quarter that would typically send a stock soaring. Why was the market so unforgiving this time? The issue with Glu Mobile was twofold. The first issue was that investors had hyped up the release to the extent of expecting unreasonable guidance for the fourth quarter. The second issue and probably most concerning was the unexpected delay in the release of several titles forecasted to contribute highly to fourth-quarter numbers. Read the full article here . Disclosure: Long GLUU and ZNGA. Please review the disclaimer page for more details. 

After a year of failures, Glu Mobile ( NASDAQ: GLUU     ) finally has developed a winning game in Deer Hunter 2014 . The game was released on September 18 and quickly jumped to the top of iOS charts for free game downloads according to AppAnnie.com . Now the question will be whether the game has staying power to garner the success of games like Angry Birds and the recent hit Candy Crush . Read the full article here . Disclosure: Long ZNGA. Please review the disclaimer page for more details. 

After reading an  article  from  StreetAuthority  about companies with the fastest growing earnings, it got me looking into the companies not already owned in Stone Fox Capital's Opportunistic models. The companies expecting huge earnings growth next year appear to be overlooked, but one should use the list as a starting point for research. The report is only as good as the underlying data. Not to mention that analyst estimates typically aren't up to date so reports can easily give false positives. StreetAuthority  makes a good point that these stocks expect to more than double earnings, yet they all trade for a PE of less than 13. Based on that combination, all of the stocks appear cheap. Now the question is whether the growth will continue on into calendar year 2013-- or if it's just a one year fluke. Another telling sign will be the direction of estimate changes for next year. It's typical for analysts to not update estimates leaving a wide variation, so if...