The Company Making a $32 Billion Bet

America's Missing Millionaires Since 2007, over 800,000 millionaires have vanished from America's shores. Like many of us, they've grown fed up with America's out-of-control tax code and greedy government … and they've decided to do something about it. To find out where they've gone – and how you can join them – click here for Bob Bauman's special report. Why a Bet on Zynga Could Have You Hitting the Jackpot By Jeff Opdyke, Editor The Sovereign Individual Dear Sovereign Investor Subscriber, This past spring, the social-gaming firm known as Zynga quietly placed a $75,000 bet in Washington, D.C., and another in California. In both places, the company hired lobbyists to push measures that would allow Zynga to radically alter its business model. The company wants lawmakers to legalize mobile gambling – a global business expected to grow to at least 10 times the size of social gaming. If Zynga's efforts are successful, a small wager today on the company's beaten-up shares could parlay into a jackpot of profits. Advertisement Get the hell out of the dollar NOW! The dollar is in the midst of a 'sucker rally'… And if you get paid in dollars and hold the majority of your assets in U.S. stocks or bonds, then you're wealth is in significant danger. This brief message may infuriate you... but as you'll see – I've found a solution that could get you through it all. Just go here for full details. Stumbling Out of the Gate Among those whose lives center around social-networking site Facebook, Zynga is most known for popular games such as FarmVille and CityVille. Among investors, however, Zynga is best known as the social-media stock that failed miserably. On the stock's first day of trading last December, the shares actually closed lower – falling to $9.45 from the IPO price of $10. That's never a good sign. Since then, the stock has lost two-thirds of its initial value. Investors realized what Zynga already knew: Facebook gaming was not going to lead to the future profits everyone was looking for. A shrinking player base, increased competition and fewer people opening their wallets to buy virtual shovels and hats for their online personas have all weighed on Zynga's ability to monetize its customers. Though revenue has ballooned, the company struggles to turn a profit under its current business model … thus, the lobbying efforts in D.C. and California. Zynga has quietly been preparing to enter the mobile gambling market, a business that makes social-gaming look like the child's play it is. At the moment, social-gaming as an industry generates about $3 billion a year, of which Zynga pulls in slightly less than half. Online gambling, however, already generates close to $6 billion in the U.S., and an estimated $32 billion in the other 70 countries where it's legal. In short, Zynga is throwing aside the kids' games to throw the dice on gambling. An Emerging Baby Multinational Zynga CEO Mark Pincus has outlined aggressive plans to enter the market for mobile gambling. He wants Zynga's first gambling product available to the public by the first half of 2013. Given Zynga's technical expertise and its proven ability to execute quickly, a 2013 launch is not far-fetched. Zynga has shown time and again that it can produce popular mobile apps that gain traction among a very large base of customers very quickly. And given that the company's brand is well known in the mobile and online universe globally, there are good odds that Zynga succeeds. If so, the company has the potential to grab a huge piece of the market quickly. That would dramatically ramp up Zynga's revenues and, likely, shove the company's bottom line well into the black. Most of this growth is likely to happen outside the U.S. – making Zygna an emerging baby multinational. Though the company is lobbying U.S. lawmakers, the reality is that America is hamstrung by outdated, but still dominant, puritanical beliefs that have shaped social legislation through the decades. Distaste for gambling is one of them. Mr. Pincus and Zynga are fully aware of that fact. That's why you're likely to see Zynga's initial efforts in the mobile-gambling market unfold overseas, where beliefs are not nearly as hidebound. Ultimately, you will have mobile gambling available in the U.S. Once U.S. lawmakers recognize the potential that exists in taxing the companies on tens of billions in gambling wagers, and on taxing the billions in winnings, they'll rush to embrace the industry like typical D.C. hypocrites. That gives investors with a true tolerance for risk a fantastic opportunity today… A Cheap Buy with Big Potential At the moment, Zynga is about as battered and bruised a stock as you can imagine. The shares have been bouncing around the $3 range for more than a month, just about their all-time low. If you read the headlines, you know why. The company is struggling as Facebook struggles – and Facebook is struggling mightily. Zynga is a stock that no one has any faith in any more. For a contrarian investor like me who sees the catalyst that could turn this stock around, this is a fabulous moment to be a buyer of the shares. There was a time several years ago that Apple was a $3 stock on the verge of bankruptcy … today, it's a nearly-$700 stock that rules the world of technology. I am not saying Zynga is the next Apple. But I am saying that when you see a battered company that has a clear catalyst that can change its fortunes, it's worth the gamble. You could drop $1,500 to $3,000 on a trip to Vegas … or you could buy 500 to 1,000 shares of Zynga and bet on the company's ability to cash in on the explosive growth of mobile gambling. Either way, your odds are similar – lose it all, or turn a small grubstake into tens, or even hundreds of thousands in profits. If Zynga successfully moves into mobile gambling – and I believe the company will – this $3 stock could prove the best bet you've ever made. Until next time, stay Sovereign... Jeff D. Opdyke P.S. Just as Zynga is looking abroad for friendlier laws and regulations to help grow their business, you should be doing the same for your wealth. One of the best places in the world we've found to do that is Uruguay, and I want to show you everything this incredible country has to offer. From safe banks and low taxes to real estate and farmland investments, there is plenty here to love. That's why this November, I'll be taking a handful of individuals with me on a tour of this hidden jewel of Latin America. To learn how you can join me, click here. Related Reading: Finding Explosive Growth in Tomorrow's Multinationals One Big Step Closer to the Fuel of the Future A Police State as American as Mom's Apple Pie Is The World's Biggest Ponzi Sceheme About to Unravel? RECENT ARTICLES 8/28/2012 What to Own as Silver Gets Ready to Rally As the price of silver heads higher, make sure you own physical silver, silver bars, silver coins, and avoid paper silver and silver etfs. 8/27/2012 Today's Risk for Workers Isn't Volatile Stocks... It's Missing Out on Future Growth For the average american, it's important to manage your IRA by investing in stocks - depiste volaility. The real risk is not investing. 8/24/2012 Finding Explosive Growth in Tomorrow's Multinationals Dversify your porftfolio with explosure to multinational companies. But the real growth comes from investing in baby multinationals. 8/23/2012 Avoiding the D.C. Finger Trap The Federal Reserve is intuding into our lives with regulations and policies. 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