On: Zynga stock plummets below value of its cash and r...

[nnnnnnnn]

"buy APPL and expect AAPL to double in 1 year."

Big error. You can predict a stock doubling in value a year in advance?

Your numbers are less shocking when you plug in more reasonable expectations, say 6% market index instead of 200% home run.

[westicle → nnnnnnnn]

The actual numbers here are irrelevant; gp was providing a hypothetical in which it makes sense to sell a stock.

If exaggerated numbers make the hypothetical concept easier to grasp I don't think it detracts from the example to use them.

[tisme → nnnnnnnn]

If you're going to buy one stock it doesn't really matter how much another stock will increase in the next year ;)

(I'm prety sure that Appell Pete Corp would be psyched if enough people make this mistake).

[_3u10 → nnnnnnnn]

Because no one looking for market index returns would hold Zynga in anything other than an index fund. If you hold zynga you're looking for a homerun, or a trader.

Thus I used numbers that would appeal to the type that might hold Zynga stock. The type that had a risk profile involving losing 90% of the stock's value in 6 months.