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WWE: Starting to Play the Game? Churn Concerns Continue to Persist

April 30th, 2015

In general as a public company, WWE has done a poor job of managing investor expectations.  Management has yet to fully figure out how to play the game of underpromising and overdelivering.  This dynamic was particularly problematic in 2014 when...

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WWE: 1.3MM Subs With Lackluster Creative? Wrestlemania Could Mark the Beginning of a Creative Upturn

March 30th, 2015

Today wrestling fans across the country are rejoicing over what many have deemed “the best Wrestlemania ever”.  Following months of complaining from WWE’s legion of vociferous fans on social media and various...

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WWE: Now With 1MM Subs the Network Once Again Becomes a “Free Call Option” Even As the Core Business Remains...

January 27th, 2015

Admittedly we walked into our offices Monday morning wondering if shares of WWE would come under pressure following a negative response from a vocal, but apparently small subsection of the...

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WWE: Framing Expectations Heading Into 3Q14 Earnings; The Bar Has Been Lowered More Than You Might Think

October 28th, 2014

In the context of the volatility in WWE shares thus far this year, the 20% trading range for the stock over the past three months can only be described as tranquil.  Perhaps more importantly the relative amount of...

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WWE: De-Risking the Story as the Company Evolves Into a “Free Cash Flow Compounder”

July 31st, 2014

When we think about the path in shares of WWE over the past 6-9 months, the perception of the company went from mature to explosive growth to mismanaged to what we think now is a compelling “free cash flow compounder” – all...

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WWE: Tempering Expectations on Network Subs, While Cost Cuts Come Into Focus

July 30th, 2014

Tomorrow WWE will report its 2Q14 operating results. While the magnitude of operating losses in the quarter will be of some degree of importance, for now everyone will likely be focused on one thing – the total number of subscribers to the...

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WWE: A 1.7x Mark to Market Isn’t the Problem, Elevated Network Spending and Epically Poor Communication Is

May 16th, 2014

“Just when they think they have the answers, I change the questions”Roddy PiperNo quote could better encapsulate the impact that the company’s press release on the renewal of its domestic TV rights fees...

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WWE: Framing Expectations Ahead of the Domestic TV Rights Fees Announcement

May 15th, 2014

“Well that escalated quickly…”Ron Burgundy, AnchormanIn what is likely to serve merely an appetizer for the main course of volatility that WWE shares are about to dole out over the next two trading days the stock witnessed a 10% intraday...

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WWE: Expectations Gone Awry? Come for the Rights Fees, Stay for the Network

April 7th, 2014

Heading into the release of initial subscriber numbers for the WWE Network our greatest fear was that the company would have a major technical issue with the video feed during Wrestlemania.  That did not happen and for the most part, the event...

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WWE: As We Move Beyond “Proof of Concept” for the Network the Second Phase of Growth Comes Into Focus, Raising...

March 31st, 2014

Was it really only 6-months ago that WWE shares were languishing at multi-year lows and trading 100-200,000 shares a day?  My how things have changed.  In a mere 180 days, WWE shares have now...

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WWE: The “Mark to Market” Could Be Higher Than Previously Thought, Raising Target to $35

February 21st, 2014

We’re going to spare you any comments on WWE’s 4Q13 earnings results. If today’s stock price action is any guide, it appears investors have deemed them irrelevant.  All eyes at this point are on two things: 1) the...

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WWE: Massive Content Monetization Is Here, Raising Target to $23

January 14th, 2014

“You‘ve got to start with the customer experience and work back toward the technology - not the other way around.”-Steve JobsIn the end, it appears the WWE Network will be nothing short of fantastic for WWE fans and the company’s stakeholders. ...

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WWE: The Network is Coming (Finally) – Assessing the Potential Risks and Rewards

December 5th, 2013

This time we really mean it…  After a number of false starts, misdirected rumors, and management mis-steps (we’re of the belief that at some point in the past 3-years there was the potential for a traditional network launch), it...

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WWE: Navigating the Pathway to $200MM in EBITDA, Taking Our Price Target to $19

September 18th, 2013

It’s not every day that the CEO of a publicly traded company offers us the opportunity to put him in a “hammerlock” if the company does not achieve its stated financial objectives.    WWE management has expressed an incredible...

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WWE: As More Meat Is Added to the Bone on the Network Front Positive Developments in the Core Remain Overlooked

March 5th, 2013

In the 18-months that we have been recommending going Long shares of WWE, we have been highly critical of management’s reluctance to provide investors with the company’s general operating and financial...

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WWE: Is the WWE About to Go “Over the Top” With its Potential Network?

February 5th, 2013

WWE shares have advanced 7.8% thus far this year compared to a 6.0% gain for the S&P 500.  Despite the solid stock price performance to start the year, we doubt that many WWE investors are taking “victory laps”.  After all, in the...

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WWE: Evaluating Positive Developments from the “Core” and Potential Network Economics

November 15th, 2012

It seems like only 5-6 months ago we were lamenting a similar dynamic surrounding WWE shares.  Here we are again, with WWE shares plumbing decade lows even though there are ample signs that the company’s core product continues...

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WWE: Our Revised Estimates, The Catalysts for WWE for the Next 6-Months

August 2nd, 2012

WWE’s 2Q12 results were more or less inline with expectations.  Based on the strong buy rate for Wrestlemania 28 and subsequent PPV events, it’s clear that WWE’s creative cycle has turned a corner.  Over time we expect this to lead to...

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WWE: Positive Developments Continue to Be Overlooked in Light of the Ongoing Uncertainty Surrounding the WWE Network

August 1st, 2012

It has been a grueling slog for WWE shareholders over the past 6-9 months.  Over the past 3-4 months the company crushed expectations for 1Q12, delivered the highest selling Wrestlemania in history,...

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WWE: On the Cusp of Meaningful Content Monetization

May 4th, 2012

It shouldn’t come as a complete surprise that WWE shares traded off over the past three months following 4Q11 results that were in no uncertain terms hugely disappointing and initial guidance for 2012 that was well below consensus forecasts.  However, we were quite...

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WWE: 2012 Becomes a Year of Significant Investment as We Await Details on Content Distribution and the WWE Network

February 23rd, 2012

Presumably, WWE investors will awake tomorrow morning after fully digesting 4Q11 results that can best be described as substandard to a round of negative estimate revisions for 2012 EPS in the 30-45%...

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WWE: As Details on the WWE Network Emerge, When Will Investors Take Notice?

December 7th, 2011

In the four months since we first introduced WWE as a long idea, the stock has increased approximately 7.3% compared to a 0.4% gain for the S&P 500 over the same time frame.   The stock has witnessed better price action of late from a...

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Current Ideas

CTC

SHORT

$101

ATGE

SHORT

$15

AYI

SHORT

$108

HCG.TO

SHORT

$0

RON.TO

SHORT

$9

BIG

SHORT

$28

ESI

SHORT

$0

BGG

PAIR - LONG BGG/SHORT TTC

25%

TTC

PAIR - LONG BGG/SHORT TTC

25%

Z

SHORT

$14.00

NA.TO

SHORT

$22

ING.PA

SHORT

$35

ZU

SHORT

$15

TRLA

SHORT

$20

MCRS

SHORT

$31

APOL

SHORT

$35

OPEN

SHORT

$30

BCO

LONG

$35

WWE

LONG

$25

KNL

PAIR - LONG KNL/SHORT MLHR

25%

XOXO

LONG

$20

CSGP

SHORT

$100

GCA

LONG

$8

IPSU

LONG

$20

MLHR

SHORT

$22

ARC

LONG

$12.50

LOOP

PAIR - LONG CSGP/SHORT LOOP

40%

THQI

LONG

$35

WPO

SHORT

$275

COCO

SHORT

$0

HNI

SIG

RGR