WWE is fun and entertaining but is it a good stock ?
It has had a low of $19 and high of $39 in the past 52 weeks. What adds to the stock value is the dividend share of .48 cents per share and current earnings of .41 cents per share. Currently most Analyst of the stock are in BUY mode.
What are the risk of the company and what could be the rewards?
Currently WWE is the only Wrestling Entertainment Company on National Television having 2 shows broadcast-ed on one of the largest networks called USA. The first show called Monday Night Raw is live every Monday on USA from 5PM to 8PM PST, and the second show Smackdown is on live every Tuesday on USA from 5PM to 7PM PST.
Currently WWE is in negotiations with the TV Contracts and the prediction is that a favorable outcome will be made. There also has been some speculation that FOX may be interested in purchasing the WWE. There has been no confirmations of this but no denials either.
Vice McMahon the main Owner of WWE had sold about a 100 million dollars of his interest in the company to bring back his failed football league called the XFL in 2020 recently.
THE RISK:
The risk would be this company is mostly based on revenues from the broadcast shows of Raw and Smackdown. If no TV contract was signed WWE would be off National Television and this revenue stream would dry up.
WWE UNIVERSE and ONLINE WWE:
The second part of this company that holds a really large part of the WWE revenues is the online main stream WWE UNIVERSE subscriptions. WWE is the only Entertainment Company to offer fans to join the WWE Universe for $9.99 per month. Currently it is estimated the WWE has over 1.8 million subscribers. With your subscription you get all the Pay Per Views, and a load of other content online. Though there has been some debate on predictions from the company on how many subscribers the company really would generate. However one good aspect is that this is WORLD WIDE.
THE RISK:
The risk is WWE UNIVERSE is based on getting fans to pay $9.99 per month for subscriptions. If there are no subscribers are to little would the company be able to pull of revenues and maintain the current revenue sources?
OTHER FACTORS:
WWE is also in the movie business under WWE Studios and they have produced a lot of films. Though many people are not aware of just how many movies WWE have made or in the process of making. This adds another outside factor to the company Movies are often expensive to produce and well as we all are aware some are flops and some are classic hits.
This goes directly into company expenses and revenues and could affect stock prices for the company.
If you look at the Stock I would do some more research on it as with any investment but I have to say it is pretty cool to say hey I own a piece of the WWE!
THE OUTLAW MICHEAL TOMSIK
PROUD WWE STOCK OWNER
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