Stock price fell 43% on news that it network has fallen way short of needed subscribers to break even and the new NBCU TV deal is not close to what was expected. Stock price had inched upward this week on rumors of new TV deal being closed to being signed. But today the price dropped some 8.66 a share on the WWE TV contract news. WWE was looking for the new TV deal to be in the same range of the ten year $8 billion deal that NASCAR received in it's last contract. But the new deal was only able to see a small increase in it's yearly fees to $200 million per year.

Not really surprising as a lot of people have been shorting this stock for a while.

No more billionaire princess Stephanie.

The hits keep coming. Being reported that an investigation is underway in Louisiana to see if the WWE and/or it's officers may have violated State and Federal trading laws. The WWE did seem to paint a very rosy picture concerning the level of revenues that was expected in the new TV deal.

Seems like the market over reacting to marginally disappointing news. I would see this as a buy opportunity ... they still have a strangle hold on the industry and the stock is now relatively cheap. I'd bet that in 6 months, WWE is back up to over $15/share.

(05-17-2014 12:26 AM)NigelTufnel Wrote:  Seems like the market over reacting to marginally disappointing news. I would see this as a buy opportunity ... they still have a strangle hold on the industry and the stock is now relatively cheap. I'd bet that in 6 months, WWE is back up to over $15/share.

Someone was pushing the idea that the new TV contract was going to be close to what NASCAR got in it's deal. While i doubt many expected that type of dollars. It was a common place belief that the dollars would be in the area of 3 to 4 times higher than current. If it turns out that someone in the company was misleading investors into thinking the dollar amount for the contract would be higher. Then the current 43% drop could be only a momentary stop on the way to the basement.

So far i have not read a single analysis which believes that the price will rebound any time soon under best circumstances. Most see it to remain down for a least a six months to a year. Company is drowning in red ink and the new TV deal is not enough to address the cash flow issues.

(05-17-2014 12:26 AM)NigelTufnel Wrote:  Seems like the market over reacting to marginally disappointing news. I would see this as a buy opportunity ... they still have a strangle hold on the industry and the stock is now relatively cheap. I'd bet that in 6 months, WWE is back up to over $15/share.

Plus over overvalued the stock earlier this year.

People are worried about Vince McMahon's net worth, but it was on paper and he's had 30 years of drawing money from that company so who knows what they guy is really worth.

From what I can tell, the company is on the upswing with characters with breakout potential. John Cena wasn't doing it other than for little kids.

As much as I hate to say it, you actually NEED a Cena type to draw some of the dollars. The feel good story lines draws the families.

With that said, I love that they are pushing younger talent and returning to better story lines. While many are slightly altered versions of previous ones, they still work.

Just quit digging up old stars to get younger talent over and then bring them back to face other older stars.

(05-17-2014 01:02 PM)tigernole79 Wrote:  As much as I hate to say it, you actually NEED a Cena type to draw some of the dollars. The feel good story lines draws the families.

With that said, I love that they are pushing younger talent and returning to better story lines. While many are slightly altered versions of previous ones, they still work.

Just quit digging up old stars to get younger talent over and then bring them back to face other older stars.

That is a major issue right now. They do not have a lot of younger talent that can carry the show. Just about every PPV over the past few years they have had to dig up older talent and bring them in to main event the show.

An investment company with a large stake in the company has openly called for the board to hire new management or to sell the company out right.

“WWE has affirmed that even with one million subscribers for its WWE network, the company stands to lose between $45 million and $52 million in FY 2014, which validates the original short thesis,” said Emmanuel Lemelson, Chief Investment Officer of Lemelson Capital Management. “This follows what we believe to be material misrepresentations by the company about both the performance and operating profit model of its WWE network, which the company has wrongly labeled ‘a homerun’,” said Lemelson.

Lemelson Capital today also called on World Wrestling Entertainment, Inc. (NYSE:WWE)’s Board of Directors to promptly replace the company’s executive management team, or explore the sale of the business, and said that such changes are a necessary component of any successful strategy going forward. “For example, promoting the WWE direct network’s value to shareholders without a fair and accurate discussion of the implications to a traditional network revenue circumvented management’s fiduciary responsibility as stewards of investor’s capital, and is part of what has emerged as a pattern over recent years. Further, there are no pending operational developments in the pipeline to offset these significant losses,” Lemelson added.

This is what you get when you let The Undertaker lose at Wrestlemania

(05-19-2014 04:29 PM)gotigers1 Wrote:  This is what you get when you let The Undertaker lose at Wrestlemania

Do as many people talk about Wrestlemania XXX if he wins?

(05-19-2014 04:34 PM)Latilleon Wrote:  

(05-19-2014 04:29 PM)gotigers1 Wrote:  This is what you get when you let The Undertaker lose at Wrestlemania

Do as many people talk about Wrestlemania XXX if he wins?

They absolutely don't talk about that match or the whole show for that matter. For years they built his matches as main event caliber and they fall short. He hasn't wrestled a young stud in years. Only over the hill veterans. They have a lot of young talent. Need to push and push hard. And stop with the tv show drama.

(05-17-2014 06:50 AM)Latilleon Wrote:  

(05-17-2014 12:26 AM)NigelTufnel Wrote:  Seems like the market over reacting to marginally disappointing news. I would see this as a buy opportunity ... they still have a strangle hold on the industry and the stock is now relatively cheap. I'd bet that in 6 months, WWE is back up to over $15/share.

Plus over overvalued the stock earlier this year.

People are worried about Vince McMahon's net worth, but it was on paper and he's had 30 years of drawing money from that company so who knows what they guy is really worth.

From what I can tell, the company is on the upswing with characters with breakout potential. John Cena wasn't doing it other than for little kids.

Ncrdbl1 has a really odd vendetta against the WWE.

If you notice, he posts these type of threads pretty regularly.

Of course, he will explain it away but a definite pattern has developed with him and these posts.

interesting

(05-26-2014 10:39 PM)ericsrevenge76 Wrote:  

(05-17-2014 06:50 AM)Latilleon Wrote:  

(05-17-2014 12:26 AM)NigelTufnel Wrote:  Seems like the market over reacting to marginally disappointing news. I would see this as a buy opportunity ... they still have a strangle hold on the industry and the stock is now relatively cheap. I'd bet that in 6 months, WWE is back up to over $15/share.

Plus over overvalued the stock earlier this year.

People are worried about Vince McMahon's net worth, but it was on paper and he's had 30 years of drawing money from that company so who knows what they guy is really worth.

From what I can tell, the company is on the upswing with characters with breakout potential. John Cena wasn't doing it other than for little kids.

Ncrdbl1 has a really odd vendetta against the WWE.

If you notice, he posts these type of threads pretty regularly.

Of course, he will explain it away but a definite pattern has developed with him and these posts.

interesting

NO secret would love to see it fail. It destroyed the territorial system. Or at least see it broken up into smaller groups. Never should have been allowed to acquire ECW and WCW and kill off it's major competition. Best days were when there was a strong WCW to compete against WWF. Impact/TNA is a poor excuse of a company and have no real faith in Global Wrestling Federation.

nascar and wresting in one thread


Quality