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...
READ MORE >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...
READ MORE >This is something we obviously did not see coming, but based on the action in WPO shares over the past 6-months perhaps someone else did. In retrospect, we should have given greater attention to...
READ MORE >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...
READ MORE >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...
READ MORE >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...
READ MORE >At no point over the past 3-years have we felt that we were in denial about the issues that THQI faced in trying to turn the company’s earnings prospects around. We were intimately aware of the company’s disproportionate exposures to the very segments of the video game...
READ MORE >Realistically THQI’s 1Q13 results were more or less a side show. The company did not release any new games in the quarter, so the focus of the earnings call was primarily on THQI’s release slate and efforts to reposition itself in the marketplace. In one week, THQI will release...
READ MORE >In many respects, WPO’s 2Q12 earnings results represent a complete validation of our short thesis on the stock. At a time when it appears most bulls on the stock own it based on some theoretical breakup value, two...
READ MORE >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...
READ MORE >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,...
READ MORE >In April 2009, in our very first report on THQI we wrote the following:“Over the past 15-months, THQI’s stock has declined in excess of 80% in large part due to poor execution by the company in its efforts to target “core gamers” and decreased receptivity among young consumers for...
READ MORE >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...
READ MORE >For the first time in a long time, THQI shareholders received some good news today. The stock has been in a steep decline over the past 4-5 months since the uDraw disaster. We recognize that people remain highly skeptical of management’s ability to execute on its plan to transform the...
READ MORE >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 >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