Monday, August 13, 2007

WWE the Investment

Seeking Alpha, an online site which discusses investments and financial outlooks for various companies, has a write up on the WWE. In the piece, Tyler McKinna discusses how the WWE as a media company has grown financially over the past four years. The article talks about how WWE's dividend has doubled over the past 3 years and how recently the stock price has tumbled, possibly presenting a good investment to buy right now.

From Seeking Alpha:

"Is The WWE On The Ropes?

If you’ve ever questioned the actual entertainment value of professional wrestling, take a look at the following numbers:

WWE’s “Monday Night RAW” on USA delivered 5,266,000 viewers on August 6, its best rating in the third quarter and a 10 percent increase over its quarter-to-date average.

After the recent murder-suicide of pro wrestling star Chris Benoit and another box-office disaster with Steve Austin’s “The Condemned," the share price of WWE has tumbled. Could this possibly present a buying opportunity?

With WWE’s Summer Slam, the largest pay-per-view event of the season, just around the corner on August 26, investors may be enticed to take a position in WWE stock with hopes of a turnaround after the share price as been beaten down by recent events.

The Finishing Move

Despite the negative press from the Benoit scandal and the disastrous performance of WWE’s movies at the box office, the overall financial performance of the company is improving. If management decided to cut its losses, get out of the major film production business and to focus on its core activities, WWE just might be able to turn things around for good."

Im biased as a fan but I'd have to agree, the WWE looks like a pretty good investment right now. It's been battered down by bad news, but not bad news that it can't recover from. The only x-factor might be whatever info Congress discovers when WWE turns it over to them in a few weeks. However, with Triple H, Mysterio, and the Undertaker coming back, and a potential rise of the new star Mr. Kennedy looming, it could become a booming success and a steal of a deal right now.

Labels: , , , , ,

Contact Me


Post a Comment

Subscribe to Post Comments [Atom]

<< Home

Receive Wrestling updates - Enter your email address: