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...
READ MORE >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...
READ MORE >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...
READ MORE >Heading into WWE’s 3Q14 earnings release here’s what we said about how the stock might react to the Network subscriber number (all else being equal):“Here’s how we think the stock COULD trade based on a...
READ MORE >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...
READ MORE >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...
READ MORE >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...
READ MORE >“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...
READ MORE >“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...
READ MORE >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...
READ MORE >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...
READ MORE >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...
READ MORE >“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. ...
READ MORE >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 >SELL
$50
LONG
$110
SELL/SHORT
$230
SELL/SHORT
$55
LONG
$70
SELL/SHORT
$4
SELL/SHORT
$45
SHORT
$18
SELL/SHORT
$5
SELL/SHORT
$42
LONG
$75
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%
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