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Steven Borovay, CFP  

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  • WWE Finally Back To The Future [View article]
    Atticus appreciate all your well thought out comments.

    I think the long term goal has stayed the same (3-4 mil) and has been factored into the stock price. It might take 4-5 years, but it's a positive that WWE management stay focus on the short term.

    As far as near term growth, there were 170,000 subs that opted out from the 1st to 2nd quarter of 2015. These are the Royal Rumble and WM crowd. That alone will push the number after WM32 to close to 1.5 mil. Also, as the PPV stayed flat year over year, my projections were a negative 10%. It seems that those loyal to PPV will remain, but I chose the most conservative projections going forward.

    As of now NXT is operating at a loss, but I doubt that's the longer term plan. NXT is an option to the main roster and it appears special events (NXT Brooklyn and the ironman match between Bayley and Banks) drew well on the Network. This will only serve to draw more people to the Network.

    Cannibalization of RAW and Smackdown based on viewing on cable is down, however, with alternative ways of viewing diluting current ratings it's difficult to measure other than saying the trend is down. I think this is where NXT plays into the picture. As currently the only exposure is on the Network, incorporating more from the minor leagues should draw more to the ratings. Too much main roster, and although a number of NXT personnel have transitioned, the NXT product is so different than what's shown on cable. Incorporating this on Smackdown in the near future (based on viewing stats on the Network) looks to be a viable option.

    In retrospect Vince and management saw that PPV was going the way of the horse and carriage and it will always be a fine balance between cable and the Network. No transition ever runs smoothly.

    Having viewed competing products I truly believe the NXT will drive Network growth and eventually be incorporated into Smackdown. Having been an avid baseball fan, I never could have gotten too much baseball. The fact is that the Network expands the reach over cable by over 3 to 1. Time will tell though how successful the Company will be. To date since I've been writing about WWE (spring of 2015) I've been pretty close to accurate on my assessments.
    Nov 23, 2015. 01:08 PM | Likes Like |Link to Comment
  • WWE Finally Back To The Future [View article]
    Jeremy appreciate your analysis. It's difficult to measure what's priced into the stock and relative to past history without the Network it's at the top of the range with $130 million more in cable contracts to 2018. To look at current p/e or trailing earnings is a mistake as I seriously doubt that future growth is already priced into the stock. With boots on the ground comes increased interest in product. India should start their Network growth phase in 2017 when the Network goes live on PPV events.

    For my long term position I have no price target. For the most recent one I took at $16.15/share is I can get $2/share that would be nice. Also bought some Jan 2017 15 calls that I will hold long term.

    Thanks for your feedback.

    Nov 17, 2015. 11:28 PM | Likes Like |Link to Comment
  • WWE Finally Back To The Future [View article]
    Dante I do it because I enjoy writing and also need to see the downside from rebuttals. So far since I've starting investing in WWE last summer I've done really well. Truthfully, I don't think my articles have any effect on the stock price.
    Nov 17, 2015. 11:09 PM | 1 Like Like |Link to Comment
  • The Good And The Bad At ZAGG [View article]
    Bram good insights on the Company. As a long term holder the stock is starting to trade on value and not growth. The market determined awhile back that this Company's growth record is spotty especially with the surprises on inventory write down. The Gap (GPS) has used buy backs over the years, due to lack of core growth, that give them a better p/e and along with the divvy made it more attractive to investors. I think ZAGG is going to trade at higher prices and on a more fundamental basis by reducing the share float. In GPS case I think eventually the Fishers or whomever take them private. With ZAGG the next step after the buybacks is to pay a dividend.
    Nov 7, 2015. 12:06 PM | Likes Like |Link to Comment
  • Is WWE An Overvalued OTT Play? [View article]
    The opinion on this stock is it's "wrestling". It's not a Testla who lost less millions than expected and on that plus news it might produce an affordable car two years out goes up to infinity. It's not Netflix who is selling currently at over a 300 p/e and next year's forecast shows it selling over 100. Despite the positive beat and a first time year over forecast that gave a tremendous amount of color (and not negative), the stock collapses. It's too easy to figure out that not only does the market not understand what the Company is doing, it will only be when they show what the game changer in the Net does will it react positively. Because of this lack of understanding I had a trading position that I've made a pretty chunk of change on. Again when it dipped bought some more.
    Nov 7, 2015. 11:53 AM | 1 Like Like |Link to Comment
  • World Wrestling Entertainment beats by $0.05, beats on revenue [View news story]
    Thanks much Atticus.
    Nov 1, 2015. 12:03 PM | Likes Like |Link to Comment
  • World Wrestling Entertainment beats by $0.05, beats on revenue [View news story]
    Atticus agree with your assessment with a slight bump up. Also where did you get the numbers for PPV on India?

    Oct 31, 2015. 11:20 AM | Likes Like |Link to Comment
  • World Wrestling Entertainment beats by $0.05, beats on revenue [View news story]
    Atticus your right about the 1st and 2nd Q 16 being pivotal in the Network growth. With the additional countries it's impossible to predict what the number will be. After WM in April the key metrics going forward will be established. India, due to limitations in broadcasting live PPV events until 2017 and how India cable can broadcast the 3 main PPV events live, is impossible to gauge. I think that 250-300K more subs after WM is very possible....but time will tell.
    Oct 30, 2015. 11:32 AM | 1 Like Like |Link to Comment
  • Is WWE An Overvalued OTT Play? [View article]
    Another hit article that comes just before the release of earnings. Michael what your missing can be found in the many articles I've written on the Company. If you mention WWE in the same breath as Netflix the big difference is WWE owns it's content and Netflix, other than their own series, pays big bucks to others for content. Also, if you listened to the c.c. last earnings Barrios said that as PPV was seasonal that might be what you see as sub count. Thus the benchmark is year to year comparisons as far as growth.

    Funny, how all these negative articles come out just before an earnings release.
    Oct 28, 2015. 10:29 AM | 2 Likes Like |Link to Comment
  • Like A Full Grown Man In A Leotard Suit, World Wrestling's Dividend Is Not A Pretty Sight [View article]
    Unfortunately very little research went into this article. I've written over 10 articles on this stock and the Company has paid a dividend since 2004. Read my article on

    The big miss here has been the transition from PPV to the Network. Cash flow was crippled from the large 50 million dollar investment in the Network starting in 2013. With the transition to the Network cash flow has increased tremendously over the past few quarters. With an increase of cable contracts to 2018 of 105 million the cash is there to pay the dividend. My calculations reveal that by the later part of next year or into 2017 there will most likely be an increase in the dividend.

    My articles has been almost spot on with WWE with few exceptions. The transition to the Network along with further development of NXT leave the Company with a much brighter future globally than ever before.
    Oct 27, 2015. 05:24 PM | 1 Like Like |Link to Comment
  • 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