Posted in: WWE WWE Stock Report for the Week Ending 8/10/2012
By Mr. Tito
Aug 10, 2012 - 9:10:57 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. This report is prepared exclusively for LordsofPain.net/WrestlingHeadlines.com.
Main Stock Indexes - Week End Closes
-Dow Jones Industrial Average: 13,207.95 (up +0.85%)
-NASDAQ: 3,020.86 (up +1.78%)
-S&P 500: 1,405.87 (up +1.07%)
Economy and WWE Stock Analysis: The WWE Stock had a good week from start to finish, at least compared to previous months' trends of holding below $8.00 per share. My guess is that investors reconsidered the WWE's 2nd Quarter 2012 earnings posted the previous week. Sure, the WWE numbers could have been better, especially on the Consumer Products... BUT the WWE still churned out a profit and the result of their increased expenses in certain places for 2012 is for investing in capital and employees to maybe launch the WWE Network. In this economy, which with problems in the European Union still lurking and U.S. growth being sluggish, the WWE will still churn a profit even during recessionary times. LoP.net
The WWE also posted their 10-Q report on Tuesday which provided more detail on the 2nd Quarter earnings release the previous week. Reading the 10-Q, the WWE seemed to have a little more confidence in the WWE Network ("potential network") or something close to it getting launched ("other distribution platforms"). Add this to Vince McMahon saying a decision on the WWE Network will be announced during the 4th Quarter 2012 (October, November, or December), and there is CERTAINTY existing on the WWE Network, whatever is close to it, or if the WWE might scrap the idea and move on. Either way, the WWE was advertising the WWE Network and desired to launch it around Wrestlemania 28 but never gave investors any information as to why it failed to launch or its current status, other than expense numbers. LoP.net
With the overall stock market, no significant fires this week... I'm guessing that the world's focus is on the Olympics and thus nothing flared up in the European Union over its member country debt problems to grab any significant attention. I believe that U.S. investors are rolling the dice on Federal Reserve policy, as last week's statement did not indicate additional money creation attempts to stimulate the economy as anticipated. The lack of an announcement could have excited investors that no additional stimulus is needed OR they could be calling the Fed's bluff in that they'll create new money anyway (big bank investors LOVE easy, cheap money) and are pricing it into stocks now - thus the rise. LoP.net
As for the WWE Stock, more weeks are needed to see how long it could hold above $8.00. The 1st Quarter 2012 Earnings Release, as you'll recall, popped the WWE Stock near $9.00 per share but was soon back under $8.00 within a few weeks. Thus, this report is uneasy about calling for a "buy"... But if the WWE adds certainty about the WWE Network or something equivalent to serve as a business model change-up earlier rather than later, the WWE stock could grow. It's all about certainty and consistency to investors as to whether or not a stock is worth (a) investing in and (b) holding for a long period of time (aside from rates of returns). LoP.net
