Admittedly, WPO’s 4Q11 results beat our estimates by a wide margin. Normally this type of EPS upside would yield a more meaningful reaction in any given company’s stock price – that did not happen. WPO...
READ MORE >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%...
READ MORE >Humor us for a moment and allow us to walk you through a sequence of events that occurred for a company for the past 12-months. For the moment we will not reveal the name of the company (but at...
READ MORE >THQI reported 3Q12 non-GAAP EPS that was actually higher than our forecast ($0.35 vs. $0.31). Unfortunately consensus expectations were considerably higher, so we consider this somewhat of a...
READ MORE >THQI reduced its holiday quarter revenue guidance by 25% last night; the company did not provide an update on its EPS or cash flow expectations. In an ironic twist, all signs suggest that THQI’s core...
READ MORE >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...
READ MORE >We’ve been watching our screens this morning in bewilderment at the stock price action in THQI. Make no mistake, Saints Row the Third is the most important title in the history of the company. ...
READ MORE >In many respects, WPO’s 3Q11 earnings results represent a complete validation of our short thesis on WPO shares. At a time when it appears most bulls on the stock own it based on some theoretical breakup value, two unalienable truths remain clear: 1) WPO management has no...
READ MORE >If we have learned anything about THQI over the past 30-months since we originally started recommending the stock as a long idea it’s that shares can turn on a dime. Even though the stock now trades more than 40% below where we...
READ MORE >On Friday, WPO management hosted its bi-annual shareholder day. If ever we had any doubts about our long term secular short case for WPO shares, they were all but removed following a series of management presentations. Based on the tenor and...
READ MORE >There are few franchises in the broader entertainment industry that have achieved the type of enduring resonance with consumers as the WWE has. For more than three decades now the company has developed a universe of characters that continues to capture the...
READ MORE >In our preview of THQI’s 1Q12 earnings results we wondered aloud as to when the “summer of discontent” for shareholders would come to an end. Well it appears based on the company’s 1Q12 results, revised outlook for FY12, and stock...
READ MORE >The summer of discontent for THQI shareholders has admittedly lasted far longer than we could have ever imagined. Shares now trade at 1.0x book value and a meager 10.0x CONSENSUS estimates for FY12, both of which represent...
READ MORE >In the 7 trading days since the start of the annual E3 video game convention, THQI shares have declined 16%. The E3 convention has historically served as an opportunity for video game developers and publishers to...
READ MORE >In many respects, THQI’s 4Q11 earnings report and subsequent conference call was everything longs could have hoped for: The company reported EPS upside (even though revs were slightly below consensus) Quarter ending cash was higher than expectations Homefront has achieved profitability The...
READ MORE >In the six weeks ago since we penned a report entitled: “Homefront’s a Hit, the EPS Implications” we have been asking ourselves the same question over and over (and perhaps many of our clients have been saying the same thing) – What do we know? The 30% decline in THQI’s shares over the...
READ MORE >As long time followers of PAA Research know, we have been recommending the shares of THQI for quite some time now. Over the past three years, THQI has transformed itself from a company almost entirely focused on the publication of video games based on key licenses in...
READ MORE >THQI shares have declined 9.7% compared to a 1.3% gain for the S&P 500 since the company reported 3Q11 results and lowered its 4Q11 guidance. We were as perplexed as everyone else about the company’s decision to lower 4Q11 guidance a few weeks prior to what could...
READ MORE >Let’s get this out of the way early on – we are firm believers in the concept that valuation is not a short thesis, or more simply stated valuation is not a thesis. Ask any hedge fund manager who has relied on...
READ MORE >Approximately 18-months ago, we scribed a letter to Warren Buffet, Chairman and CEO of Berkshire Hathaway about his sizeable ownership stake in the Washington Post Company. It might have been an audacious endeavor on our part...
READ MORE >THQI reported 3Q11 earnings results after the close yesterday. You can read the full earnings release here. The headlines are that the company beat consensus expectations for the December quarter, but...
READ MORE >THQI will report 3Q11 earnings after the close on Wednesday February 2nd. Since the release of THQI’s drawing based peripheral for the Wii on November 14th (uDraw), the stock has rallied 41%. ...
READ MORE >At the depths of the summer swoon and what proved to be the nadir for THQI shares, we issued a report entitled "THQI: The Waiting Has Been the Hardest Part, Finally Some Catalysts for THQI". It was late August and THQI shares...
READ MORE >For several months now, we have been waiting for an update on the status of three separate qui tam actions outstanding against Kaplan Higher Education in the United States District Court Southern District of Florida. ...
READ MORE >Approximately two and a half months ago, we published a report that argued that the tail risk associated with owning WPO shares continued to increase. Today we received further evidence that "tail risk" continues to grow for the company.Filing...
READ MORE >Admittedly, WPO's headline earnings results for 3Q10 appear to be compelling. The company reported total revenues of $1.189 billion and adjusted EPS from continuing operations of $11.40. This compares to our...
READ MORE >Approximately 5-months ago we introduced KNOT as a long investment idea. At that time our primary thesis was as follows: KNOT still has leading media and ecommerce franchises serving large end-markets. The company has just...
READ MORE >On Friday, November 5th, WPO will report 3Q10 earnings. WPO is at a significant crossroads. Fundamental demand for the company's primary growth vehicle over the past five years has changed abruptly at a time when secular headwinds facing WPO's...
READ MORE >THQI's "summer of discontent" appears it could finally be coming to a close. Since Memorial Day, THQI shares have lost close to 40% in value. THQI shares now trade below book value and appear to discount a scenario in which the company...
READ MORE >Barron's columnist Andrew Bary published a follow up piece this weekend to his initial write-up on WPO in which he argued that the stock could be worth as much as $900/share. You can read the original article here. Mr. Bary's...
READ MORE >SELL/SHORT
$4
SELL
$50
SELL/SHORT
$45
SHORT
$18
SELL/SHORT
$5
SELL/SHORT
$42
LONG
$75
LONG
$128
SELL/SHORT
$50
SELL/SHORT
$50
LONG
$5.50
SHORT
$50
SHORT
$28
LONG
$65
LONG
$37
PAIR TRADE
$10
PAIR TRADE
$30
LONG
$35
SHORT
$35
SELL/SHORT
$10
SHORT
$101
SHORT
$15
SHORT
$0
SHORT
$9
SHORT
$0
PAIR - LONG BGG/SHORT TTC
25%
PAIR - LONG BGG/SHORT TTC
25%
SHORT
$14.00
SHORT
$22
SHORT
$15
SHORT
$20
SHORT
$31
SHORT
$35
SHORT
$30
PAIR - LONG KNL/SHORT MLHR
25%
SHORT
$100
LONG
$8
LONG
$20
SHORT
$22
PAIR - LONG CSGP/SHORT LOOP
40%
LONG
$35
SHORT
$275
SHORT
$0