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When You Peak, You Win! However, I'm not Danica Patrick.

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March 01, 2011 – Comments (10) | RELATED TICKERS: WWE

I'm mikecart1!  I'm here to give you some good news that you usually won't find elsewhere.  Enough with the intro.  This is my buy: WWE.  As a shareholder I must say I've been hit by the recent quarterly results.  However, if you are aware of the WWE calendar, you know what's coming up:

WrEstLeManiA 27!!!! - April 3, 2011

Some positives with this trade:

-Currently the price is around $12.90.  It hasn't been this low since early 2009 during recession.  The past 5 years, the price has been generally $13.50-$14.50 range with peaks of nearly $19/share.

-The Rock has returned to guest host which is a huge plus

-The new cast of wrestlers have somewhat cemented their stay and are slowly increasing their experience as a WWE superstar

However, if you pay attention to history and with WWE, history seems to really repeat itself.  We are coming up near to the May/June period.  What does that mean?  Well looking at 10 year history the stock as gotten a push prior to the May/June period and run up in 2001, 2002, 2003, 2004, 2006, 2007, 2008, 2009, and 2010!  That means in the past 10 years, it has missed the push just 1 year!  On top of that WWE has an outstanding dividend that has been consistent June 25, 2003! 

So in a market that seems hard to find sure bet stocks, could WWE be that sure bet?  I'm guessing $14 or so in the next few months.  Compared to $12.xx that is about a 10% increase in a relatively short time.

Cena likes to say U Can't See Me.  I might not, but I can surely see WWE!

:o]   

10 Comments – Post Your Own

#1) On March 01, 2011 at 12:48 PM, whereaminow (20.24) wrote:

I know a couple long-time WWE shareholders and they love the dividend. Of course, they love the product too. If you're going to consume a product at a high level, you might as well buy the stock, especially if it pays a dividend. You really can't lose. 

David in Qatar 

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#2) On March 01, 2011 at 12:55 PM, Momentum21 (93.24) wrote:

I really like this thought...

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#3) On March 01, 2011 at 1:00 PM, mikecart1 (98.85) wrote:

whereaminow,

Agree.  I like the dividend.  Unfortunately I have most of my dividend plays in stocks like MO.  However, WWE is a stock that is definitely cyclic regardless of the current price.  I sense Wrestlemania this year will be pretty good with the Rock being involved.  Also the stock was hit recently so even it it just goes back to its average, it is still a decent gain.

Momentum21,

Thanks.  I try to put out good info with real stock calls with good backup info.  That is how I invest. :D

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#4) On March 01, 2011 at 1:10 PM, kdakota630 (29.52) wrote:

I'd considered WWE in the past but I don't think that dividend is sustainable.  Plus, I haven't watched the product in years.

That being said, I was at ringside for Wrestlemania X8.  If you watch anything from that one you can see me with my back to the camera wearing a bright orange t-shirt.

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#5) On March 01, 2011 at 2:05 PM, mikecart1 (98.85) wrote:

kdakota630,

I got Wrestlemania 18 on my computer.  I will look for you lol.  People worry about the dividend and it is a + either way.  Instead of the share price dropping 4 times a year, it will instead stay steady or increase.  Dividend I believe is sustainable because it appears that wrestling is about to cycle again on the upside.  Even though wrestlers are retiring soon, they got the new breed coming up.  I believe the Miz will become the Rock pretty soon - at least a version of him - and carry the company the next few years with Cena and Orton getting older.

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#6) On March 01, 2011 at 2:41 PM, kdakota630 (29.52) wrote:

mikecart1

I got Wrestlemania 18 on my computer.  I will look for you lol.

Best match to see me from what I can remember is the Hogan/Rock match.  Short spiky brown hair, average height, fairly muscular.  I'm kind of lower middle of your screen.

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#7) On March 01, 2011 at 2:51 PM, mikecart1 (98.85) wrote:

Haha cool kdakota630, I will let you know if I see you haha.  That match was epic too.

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#8) On March 01, 2011 at 3:06 PM, Brent2223 (30.95) wrote:

Any thoughts on how UFC has impacted WWE?  I hear UFC is drawing huge PPV audiences, can't help but think some of this is at the expense of WWE, but I've put about 30 secs of analysis into that so would be curious about what others think.  Was Brock Lesnar making the move from WWE to UFC a sign of things to come?  I understand there's lots of differences between WWE and UFC that fans will argue, but the live event/PPV model seems to be competing for the same general audience.

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#9) On March 01, 2011 at 3:38 PM, mikecart1 (98.85) wrote:

Hi Brent2223,

This can be debated a lot of ways.  I would say UFC impacted but not as much as WWE impacted itself.  If the WWE was like it was when it was PG-13 and had Rock/SCSA/HBK and others leading the company, then WWE would still be destroying stadiums and having really good PPV buys. 

When WWE went PG for Linda's failed campaign run, that is when things started to fall.  They did a lot of stupid things like ruining WWECW and creating NXT.  Also people retired and TNA is also taking some market share as wrestlers have moved there. 

Overall, I would say a big reason for the decline is just the audience WWE is going after now - kids.  When it was PG-13, teenagers and adults got into it.  Even adults that weren't even wrestling fans would tune in on Monday Nights just to see what the Rock would say or SCSA would do.  WWE is missing star power right now.  Brock Lesnar was supposed to be the face of WWE until he left.  But he didn't really influence it as much as just management of the company has.

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#10) On March 01, 2011 at 4:54 PM, kdakota630 (29.52) wrote:

mikecart1

It was epic, and it sucked all the energy out of the building like nothing I'd ever experienced before.  If it seemed quiet for the matches after that one, that's the reason.

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