Lululemon Athletica inc. (LULU), Chesapeake Energy Corporation (CHK): The Secret Club No CEO Wants to Join

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And there’s Marc Pincus, CEO of Zynga Inc (NASDAQ:ZNGA), the online gaming company, who may get blackballed from the club if online real money gaming takes hold. The company has launched it to a limited extent in the UK, but on the last call this was said not to be material to earnings. If online real money gambling isn’t a big hit, he’s a real contender for membership; his stock has dropped from an all time high at $15 in the spring of 2012 to struggling to stay above $3.

It didn’t help that Pincus overpaid for a one-trick pony gaming company, $210 million for OMGPop and its Draw Something game that immediately started losing players, and dropped $228 million on the San Francisco headquarters. It didn’t help stockholder confidence that Pincus sold so many shares almost immediately on the lockup expiration. Although perks were Googleworthy major talent has left Zynga Inc (NASDAQ:ZNGA) in droves, and the company has recently had to lay off 520 workers; that’s 18% of its workforce.

Listed repeatedly as one of the worst CEO’s of 2012, Pincus looks like he’s trying not to reprise that role for 2013 with this last ditch effort to cut expenses by cutting staff, especially after disappointing guidance in April. Also, Pincus is betting the Farmville2 as the best last hope for a hit game. Still, fingers crossed, Pincus may yet get to settle in the soft-as-butter leather club chairs.

The meeting is dismissed

Day needn’t have joined the club, but the pants fiasco required a scapegoat. Lululemon Athletica inc. (NASDAQ:LULU) at these prices is a better buy than before. However, waiting to see who the new CEO is might be wise. As for Zynga, I see the painting on the wall for Pincus. As much as the club would welcome Jeffries with open arms that golden parachute is going to keep him off the roster. Meanwhile, there are much better companies than Abercrombie & Fitch Co. (NYSE:ANF) and Zynga, companies whose CEOs will never be invited to this club.

AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool recommends Lululemon Athletica inc. (NASDAQ:LULU). AnnaLisa is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article The Secret Club No CEO Wants to Join originally appeared on Fool.com and is written by AnnaLisa Kraft.

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