Posted in: WWE WWE Stock Report for the Week Ending 6/1/2012 - NEW 52-Week Low Achieved
By Mr. Tito
Jun 1, 2012 - 9:23:28 PM
Disclaimer: The following prepared report, using sources and data believed to be accurate and reliable, is for entertainment purposes only. Information and/or opinions expressed by the author are does not constitute a solicitation or an offer to buy or sell any security. Readers of this report are to buy or sell securities at their own risk.
5/25/2012 CLOSE: $7.98 per share LoP.net 6/1/2012 CLOSE: $7.64 per share (down -4.26%) LoP.net
52 Week Highs & Lows - through 6/1/2012
- Low: $7.59 per share LoP.net
- High: $10.80 per share LoP.net
Dividend Yield: 6.10% LoP.net
Financial News/Reports relevant to WWE: New Senior Vice President of Live Events, named Patrick Talty, was announced to manage the WWE's 300 live events per year... The significance of that is who he reports directly to... Paul Levesque, EVP of Talent, otherwise known as Triple H. LoP.net
Main Stock Indexes - Week End Closes
- Dow Jones Industrial Average: 12,118.57 (down -2.70%) LoP.net
- NASDAQ: 2,747.48 (down -3.17%) LoP.net
- S&P 500: 1,278.04 (down -3.02%) LoP.net
Economy and WWE Stock Analysis: The WWE Stock hit a brand new intraday trading 52-Week Low when it hit $7.59 per share at 3:58pm before last second stock buys pushed the WWE stock back up to close at a 52-week low at $7.64 per share. The 1st Quarter 2012 Earnings Results "bump" is gone from early May. This is despite what looks to be a profitable 2nd Quarter with Wrestlemania 28 showing indications of record breaking revenues and Extreme Rules, with Brock Lesnar vs. John Cena drawing added buys by early numbers. Still, Investors have long-term views of stocks and if the WWE cannot find new revenue streams, like a WWE Network, interest in the stock won't be there and selling will continue. LoP.net
However, the WWE Stock is partially at the mercy of what the rest of the Stock Market does. As noted by previous LoP WWE Stock Reports, there is serious concern about a handful of European Union members having explosive economic problems due to extreme Government Debt issues and economies unable to mathematically sustain them. The "P.I.I.G.S.", Portugal/Italy/Ireland/Greece/Spain, are putting the hurtings on the World Economy with the threat of those countries defaulting on their debt or the Banks, both European and American, having problems from financing them. Plus, Europe is a big U.S. trading partner... Watch Spain closely because they've already declared a recession in their country, but they are a much bigger country than Greece. LoP.net
The United States is catching the cold from European Union's economic and debt issues. Combine that with previous months' higher gasoline prices along with ongoing uncertainty about the U.S. economy and its recovery from the classified recession of December 2007 to June 2009, and you'll have a weak Jobs Report. The Unemployment Rate ticked upward by 0.1% to 8.2% while the economy only added 69,000 (North of 150,000 considered showing growth), with both March and April jobs numbers actually seeing downward revisions. As a result of this report, building on other issues, the Dow Jones Industrial Average lost almost -275 points on Friday (single day -2.22% decrease). LoP.net
One could say that WWE's stock, at $7.64 per share might be worth a speculative "BUY" because the stock could grow once investors see a very profitable 2nd Quarter as a result from Wrestlemania 28 breaking records and a non-big 4 Pay Per View, Extreme Rules, earning more revenues. Being reported close to Monday Night RAW beginning its 3rd hour on July 23rd could give the WWE Stock a boost. However, two things to consider... For one, stocks are thought about on the long-term level... Thus, investors are bothered by something 10-12 months down the line about the WWE, such as a lack of WWE Network and being too reliant on the old Cable Deal/Pay Per View model that has peaked. But secondly, if the European Union implosion hits on top of any additional economic softness seen in the U.S., taking a gamble on a pro wrestling stock with your hard earned money presents risk. LoP.net
