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Steven Borovay, CFP

 
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  • WWE Network, Like The Starship Enterprise, Boldly Going Where No One Has Before [View article]
    Today's down day is due to the skepticism of the release announcing subs. V McMahon only said that less than 1 year after the Network start up, 1 million sub mark was hit. Only assuming as the Network started 2/24/14 that includes the fall off from subs cancelling the day of Royal Rumble. Management needs to be extremely clear that is the case on the c.c.
    Jan 28, 2015. 12:17 PM | Likes Like |Link to Comment
  • WWE And The Three Stooges [View article]
    Pot Roast actually just saw this post today. There are always going to be doubters especially after the release they hit 1 million subs. It's going down today as skeptics doubt how they arrived at that number and that the release came out only now because of the As far as taking on more debt, even without that announcement yesterday, the amount of cash burned on the 3 q was minimal compared to the 1st 2 q's of this year and with 50 million more on the balance sheet on the 4 q I don't see the divvy at risk. The b/e for 2015 on an OIBDA basis was also lowered with the cost cuts to about 825,000.

    Appreciate your feedback. Sorry for the late reply.
    Jan 28, 2015. 11:06 AM | Likes Like |Link to Comment
  • WWE And The Three Stooges [View article]
    Pot I did not understand how most people discounted the Network other than past managements recent track record. The internet is so powerful and WWE now controls their destiny. They obviously cannibalized their cable deals on one hand and the other hand had to negotiate deals with existing cable providers that would reduce the number of subs. My next article will be telling and I would appreciate your feedback.

    In answer to your question I bought some at $11.15/share and then 40 July calls with a strike price of $11/share. Don't like calls as it truly is the poor mans game. But as I've margin my cash account over the years to make more money, I had a lot of WWE stock as as was buying as it dropped. Have another position in my retirement account. If you buy any do it with a longer term horizon.

    Finally, Pot Roast, have you ever tried the Braised Roast at Trader Joes? Delicious but full of sodium.

    Appreciate,
    Steve
    Jan 27, 2015. 04:12 PM | Likes Like |Link to Comment
  • WWE Network, Like The Starship Enterprise, Boldly Going Where No One Has Before [View article]
    How cool would it be if on a major event WWE took a secret sub fan poll to determine who would win the event? The passions would run wild on that and the sub count increase substantially. Just because they left because Roman Reigns won Royal Rumble, doesn't mean they won't come back and flood all social media sites with who they feel should win. Remember how Barack Obama first became President. A large part of his success was on how his campaign used social media. It can be your friend or enemy depending on how you look at it.
    Jan 26, 2015. 12:21 PM | Likes Like |Link to Comment
  • WWE Network, Like The Starship Enterprise, Boldly Going Where No One Has Before [View article]
    Last night's Royal Rumble shows you that you can't please everyone all the time and how when an event goes other than the way that particular fan wants it to turn out a fan can cancel the subscription. With the CancelWWENetwork hashtag on Twitter there were most likely a large number of subs that cancelled. Again, at least for the metric churn rate, WWE Network is not like Netflix. Not bad in the long term especially as the base sub count will increase over time and these seismic events will have less of an effect over the total sub count as a percentage of total subs. Also, adding another Steve Austin Podcast the beginning of February with HHH is a very smart move. WWE management should add a monthly Podcast with Mr. McMahon calling it 'The State of the Universe'. Austin is awesome on his Podcasts.
    Jan 26, 2015. 12:03 PM | Likes Like |Link to Comment
  • Five Keys For WWE's Success In 2015 [View article]
    Christopher what also stood out to me on your article was your phrasing that 'the company remains blindly optimistic' of the Network. That's the disconnect between where the company is prior to the 4th q release and where they want to go. Barrios needs to take it one step at a time getting from A to B to C and not from A to Z. Not sure how good Schwartz is on CC's, but they need some fresh blood to clearly explain the metrics of the product. You hit it right on the head that the over-the-top projections need to be more realistic.
    Jan 23, 2015. 05:51 PM | Likes Like |Link to Comment
  • Five Keys For WWE's Success In 2015 [View article]
    Christopher exceptional article!
    Jan 23, 2015. 12:02 AM | Likes Like |Link to Comment
  • WWE Network, Like The Starship Enterprise, Boldly Going Where No One Has Before [View article]
    Doubt they will increase it farhan, but with a $50 million injection in the 4 q they will not cut it either. If I had to give odds it would be......99.99% the same with the balance anything else. Mr. McMahon loves his dividend and as long as they go through 2015 not depleting capital, there's very little chance of any cut. The last q release showed how much they slowed depletion of liquid cash in contrast to the 1st 2 q's. Hope that helps.

    Steve
    Jan 22, 2015. 09:09 PM | 2 Likes Like |Link to Comment
  • ZAGG: Still A Decent Forward Free Cash Flow Yield With HzO Thrown In For Free [View article]
    Bram appreciate this article as I have been a ZAGG holder for a number of years. Management has gotten better over time as they tended to overestimate on all metrics and when they disappointed the stock got slammed. They sometimes throw you a curve, but they are becoming more consistent. Beginning of December they announced that the Invisible Shield is going into 660 Costco's. That's how they usually get a foothold by starting with this product. What made this commodity based stock intriguing to me was how they are turning their model into a cash cow. The drivers in the future stock appreciation will be free cash flow.

    Jan 21, 2015. 02:51 PM | Likes Like |Link to Comment
  • Is WWE At Risk Of Another Dividend Cut? [View article]
    Thomas the breakdown has nothing to do with fundamentals and the next earnings release as no one knows what the outcome is. I believe the action is from those who trade the stock and it is being manipulated down. All Network value has been removed and the value reflects more that the sacrifice of PPV for the Network was a failed move. I believe management is part of the problem in how they portrayed the Network.
    Jan 20, 2015. 11:34 PM | Likes Like |Link to Comment
  • WWE Network, Like The Starship Enterprise, Boldly Going Where No One Has Before [View article]
    Prag I just think it's anyone's call short term as there was no fundamental reason it collapsed. With a long term horizon there's no problem buying it now. I just feel that WWE management truly has yet to realize that their model is not Netflix. With that the Street is going to pay more attention to churn on the next release and not what really drives the Network long term. It's now strictly a technical play and that's not what I'm about. Longer term....as always, fundamentals prevail. Hope that helps.
    Jan 20, 2015. 11:20 PM | Likes Like |Link to Comment
  • Is WWE At Risk Of Another Dividend Cut? [View article]
    Dave a number of critical omissions. You forgot the $50,000,000 injection of cash in q 4, the reduction of OIBDA loss to .01/share in q 3 and that OIBDA b/e metrics have been reduced due to cost savings lowering the bar to b/e. Cash drain significantly dropped in the last quarter. Need to be fair and balanced. Management has been significantly weak on comparing their product to Netflix and execution was terrible at the start of this venture. What everyone fails to realize is that PPV was only 16-17% of OIBDA from 2011-2013. Finally, if you look at one of my articles on the Instablog you will see how V McMahon loves his return of capital and dividends as it a critical component of anyone investing in WWE. I do not think with all that is going on the divvy is even close to being at risk.
    Jan 20, 2015. 11:48 AM | 2 Likes Like |Link to Comment
  • WWE And The Three Stooges [View article]
    Pot Roast, when you have some time, take a look at my most recent Instablog and give me your best shot.

    Appreciate
    Jan 16, 2015. 11:17 AM | Likes Like |Link to Comment
  • WWE And The Three Stooges [View article]
    The stock has broken down as the technical short term actions in the stock are prevailing over unknown fundamentals. The unknown is being caused by managements inability to show the invest community the true drivers of the Network. Barrios during the Needham conference had more of the same. What I noticed was he used USA Raw numbers from the end of the 2nd quarter showing how popular Raw is. Everyone knows that after the numbers have been going down. Then he says the key to the Network is increasing foreign subs, leaving out US growth. Makes no sense as the sub base in the US was over 65% of PPV and without this base growing how does the Network reach the 2-4 mil sub count Barrios talks about? In other words, lack of clarity by management has contributed to the breakdown in the stock. I will wait until after the 4th q cc and how it's presented to determine whether Lemelson was right that top management (in this case Barrios) needs to be replaced. Not a short term holder, but after listening to G Barrios on multiple calls and conferences, after becoming a shareholder, I'm losing faith in his ability.
    Jan 15, 2015. 10:37 PM | Likes Like |Link to Comment
  • WWE And The Three Stooges [View article]
    Bought some July 17th calls today. Not a fan of calls or puts. But really belief if the company gets the metrics right, the 1st Q earnings and sub count will be better than anticipated. It just depends on what the bottom is on the stock and truthfully no one knows as there is very little clarity for management.
    Jan 15, 2015. 01:07 AM | Likes Like |Link to Comment
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