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Steven Borovay, CFP  

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  • World Wrestling Entertainment: Throw It Over The Ropes [View article]
    PD thanks for the reply. In this market environment I believe, like you, preserving capital is more important than anything else. Also it's important to focus on why not to invest in a company.

    With that said, the driver of WWE stock prior to the inception of the Network was both expectations of the Network and cable deals. After the Street saw the cable deals along with Network sub counts were not the reality, the stock collapsed. Management did a horrendous job in putting out unrealistic potential numbers on both counts and the stock paid the price. Stocks always tend to overreact to the upside on potential and then downside when the negative comes out. About the time it bounced off the bottom I bought a substantial amount of shares.

    A couple of months after the collapse I started writing about the stock on Seeking Alpha. As my focus is just WWE, my projections on sub count pretty much hit either the expected range or just beyond it. On WWE it was more difficult to predict numbers due to managements not disclosing much information other than when they hit a milestone or a quarterly release. Now with the last quarter release they projected a sub count range at the end of the 3rd Q 15. Going forward it's easier now to predict sub count as there will always be a bounce up from Royal Rumble and Wrestlemania were individuals become permanent subs. The key number going forward will be sub count at the end of the 2nd Q 16.

    As a decades successful investor in individual stocks, the metrics I look at have for the most part worked.

    I appreciate your feedback PD for as much as I have invested in WWE, I definitely need to see the other side of the coin. Steve
    Sep 14, 2015. 01:32 PM | 1 Like Like |Link to Comment
  • World Wrestling Entertainment: Throw It Over The Ropes [View article]
    An article that is definitely very "backward looking". Couple of questions.

    1. How much have you factored in the increase of $105 million due to cable contracts to 2018?

    2. When Facebook broke down after the initial offering to the high teens from the thirties it was due to "backward looking". Then we all know how they monitized the base with mobile and other investments that paid off and the stock is now in the 90's. So how can you value a company going forward based on a 12 month past analysis without using projections in the future?

    3. If you review my articles on WWE, I've been right on for the most part. With a basis of just under $11/share WWE, at time of purchase I viewed WWE as a tremendously undervalued due to numerous factors. Based on what I see (in my next article) the static PPV model will be equaled by dynamic Network model on a OIBDA basis at the end of the 2nd Q 2016 (1.3-1.4 million subs). How could this dramatic change not be factored in any analysis that fairly evaluates any stock going forward? Further, in one of my past articles I showed where the average value of WWE stock over 10 years when the company started paying dividends was from $13-17/share. As WWE is just outside the top range, very little of the Network's potential growth or over a $1 per share increase in earnings due to cable alone have being factored into the price going forward. Why are you omitting these facts and sticking to a model that values any high p/e stock as a bad investment?

    4. Finally, what are your projections going forward for subscriber count, OIBDA, EPS and other key financial metrics used in evaluating whether a stock is a good investment going forward? It seems there was very little analysis other than what other peoples projections are. Just looking at EPS the analyst have been wrong for 5 straight quarters as WWE surprised.

    Appreciate your feedback,
    Sep 13, 2015. 12:15 PM | 1 Like Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Edward appreciate the feedback and definitely less frustrated. To date on the Network they have only picked the low laying fruit. Barrios the other day in the Needham investor presentation stated they will start drilling down more specifically within each country as they see what's working.

    As far as the movies, they have done very low budget movies. They want to keep the revenue stream from the movies separate from the Network. It's not been profitable and to include them on the Network will remove any incentive from fans going out and buying them and increase the losses. As a part of the overall franchise this is one of the smallest. Hopefully with increased sub count, more fans buy the movies.

    Hope that helps,
    Aug 7, 2015. 11:56 AM | Likes Like |Link to Comment
  • Clearing The Air For World Wrestling Entertainment [View article]
    Dakota nicely written article. Barrios on his last investor presentation suggested India's pricing for the service might have to lowered to compete with lower prices people of that country pay for other online services. There will be obstacles in the way, but the positive growing metrics and constantly beating Wall Streets projections going forward provide a strong base for the stock to appreciate.
    Jul 13, 2015. 12:23 PM | 1 Like Like |Link to Comment
  • WWE Still Trying To Prove It Is 'Tough Enough' For Wall Street As Signature Reality Series Returns [View article]
    Dante anyone who follows WWE knows about the talent pool in NXT. You've posted some of the same old arguments on my articles. Your take is like the transition from the horse and buggy to the auto. It's all about technology.

    Good thing for us long term investors is more and more positive articles are being written about WWE than ever before. This one was nicely written and hit a lot of key points going forward.
    Jun 24, 2015. 11:56 AM | 4 Likes Like |Link to Comment
  • WWE: Positive Trends Overshadowed By Unrealistic Expectations [View article]
    Trevor nicely written article. Short term there will be bumps in the road and on Barrios latest presentation he toned things down a bit. Also, he pointed out that the Company hired 5 data scientists to study trends and analyse what's working. He then pointed out that Netflix at 15 months after streaming began was at 40% of where they are now. This is relevant in that WWE 15 months in is at 40% of where they want to go (3 million). I still feel after purchasing the stock last summer it's the Law of Large Numbers that will ultimately prevail. Too many people worldwide that like this form of entertainment, however, nothing is built in a day.
    Jun 18, 2015. 11:34 AM | Likes Like |Link to Comment
  • World Wrestling Entertainment on watch after strong bull call from BTIG Research [View news story]
    Dante read your writings for awhile. Are you short the stock?
    Jun 17, 2015. 11:17 AM | 2 Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Vandalizer not much of a reader other than financial. But 'Field of Dreams' is my all-time favorite movie.

    Enjoyed our conversation.

    Jun 7, 2015. 09:21 PM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Players can take advantages of what's available....if it's legally prescribed and not to enhance performance. Corked bats were more limited than steroid use. Humidors benefited all playing. Steroids benefited cheaters. Baseball is not scripted and wrestling is. Big difference. I enjoy wrestling as you see great athletes with Three Stooges scripts. Perfect combination for me especially because the Red Sox claim to have won three WS since 2000. In my mind they haven't won since 1918. One day, if I live long enough, I will write a book about how the sport was destroyed by all those involved in promoting cheating.
    Jun 7, 2015. 02:50 PM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Vandalizer your article link didn't open correctly.

    I'm set in my ways on baseball. We can go on forever disputing levels of cheating. When teams like the Red Sox have trainers instructing players on how to inject roids, there is something grossly wrong with that. The playing field was more level prior to the Bash Brothers. There a reason why from the late 90's on they call it the Steroid Era. Whitney Ford might have scuffed the ball. Gaylord Perry added substances. But bottom line it wasn't something external they put in their bodies that made them better.

    Appreciate the back and forth.
    Jun 6, 2015. 12:33 PM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Vandalizer I'm a numbers freak. Growing up collecting baseball cards I was always turning them over to look at the stats. Back in the day it was uppers, coffee and alcohol and not performance enhancing drugs. Much different in my mind as it was obvious with Canesco and McGuire something had changed. It wasn't for the better either. I'm old school and will remain that until the day I die. My perspective probably matches kids raised in the 50's and 60's.
    Jun 5, 2015. 01:02 AM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    StockFlipper your insights are right on. It is a contradiction. In my mind any World Series winner since the late 1990's cheated. Roger Maris holds the single home run record. Henry Aaron holds the all time home run record. The cheaters destroyed the numbers of the sport and I'm all about numbers. Plus I hate the Red Sox and they haven't won a real World Series since 1918. I was there at the Angel-Red Sox 5th game in 1986. Dave Henderson home run went right over my head in the left field pavilion.

    I don't condone drug use, but Wrestling records are for the most part meaningless and I still love the Three Stooges. It's all about entertainment now.
    Jun 3, 2015. 11:53 PM | 1 Like Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    StockFlipper not until last summer when I invested in the Company did I subscribe. Strange thing was that I was a big baseball fan until the steroid ERA. Ruined the game for me as I'm a numbers person and the records mattered. With WWE I find it extremely entertaining and records (other than the Undertaker's streak) mean little. Quite a stretch going from a baseball purist to a fan of WWE.
    Jun 3, 2015. 11:13 AM | 1 Like Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Very good call for Barrios with J.P. Morgan. He seemed a bit more at ease and gave some new detail as to what management is looking at as far as growing the Network. Liked the new info on how they pick NXT cities to perform in.
    May 20, 2015. 04:25 AM | Likes Like |Link to Comment
  • A Frustrated Long-Term Investor To WWE Management: You Need To 'Handle The Truth' [View article]
    Not really crazy about the late release Friday on the Studio side as it seems management is putting the cart before the horse. The Studio in the past has been a minor cash drain. Hopefully this doesn't set it up to be a major one as on the movie making side WWE has had little success. It would have made more sense in growing the Network and then spending on this part.

    Also, with Barrios speaking Wednesday, it seems the stock is manipulated down on the days he speaks and it's not because he is saying anything new. I'm going to put a Instablog article after this speaking event as I think WWE stock, as one of the readers of my articles, is manipulated short term especially because their are only two known fundamentals. The first being the increase in cable contracts to 2018 that could give WWE as much as $1.00/share bottom line. The second is that the Network is no longer a drain on capital going forward. It's these two key factors that are establishing a bottom on the stock.
    May 16, 2015. 10:28 PM | Likes Like |Link to Comment