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Steven Borovay, CFP

 
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  • Advanced Battery Technologies: An Egregious Chinese RTO [View article]
    Everything in this guy's article is on the Yahoo message boards at one time or another. Do we have another Barry Minkow????
    www.nytimes.com/2011/0...

    This article was timed as the individual(s) involved shorted tons of shares. Just like a stock named ZAGG the poster will be exposed.

    It in the old days in the 80's when I was a CFO/Financial Principal of a brokerage firm this was called front running....now it's business as usual.
    Mar 31, 2011. 12:28 AM | 6 Likes Like |Link to Comment
  • WWE's Narrow-Minded Focus Is Alienating Fans And Investors [View article]
    Edward there was a time Major League Baseball was dying. A time Professional Football was dying. Wrestling has been around as long as both those sports (although wrestling is just entertainment). Also, if every change in a business model was evaluated within one year of the change with positive results expected immediately, my initial investment in Facebook would be deemed a failure. Facebook had to monetize a segment of their enormous base and eventually did so with mobile. WWE's new model not only takes advantage of cable deals but with the Network opens their universe to the hard core fan worldwide that they would not have been exposed to. The majority of negative reviews of the Company focus on how they cannibalized their existing PPV base, but fail to state why. It's not the hare who wins the race.
    Nov 20, 2014. 11:25 PM | 2 Likes Like |Link to Comment
  • World Wrestling Entertainment: Why I Won't Be A Shareholder Again Anytime Soon [View article]
    Appreciate your feedback Michael. Where Netflix and WWE are similar was the transition to streaming had to be made as the technology was there and failure to do so would have resulted in a continual erosion of the base and profitability. Netflix made the transition and Blockbuster did not. Where they do differ is that Netflix had competition and WWE does not. Also, we will agree to disagree, as growing up around wrestling fans (from the Freddie Blassie generation....i.e. I'm old) there is a passion worldwide for this form of entertainment just like fans of many other entertainment and sports outlets. The metrics on social media numbers for WWE worldwide are insane. All can guesstimate as to how many will subscribe as at this point it's all speculation. In general, a consolidation of a number of profit centers on one site leads to a reduction in expenses and increases margins long term.

    As far as the minutia concerning the pricing and how people avoid paying due to being burdened with additional telecommunication costs, this argument falls to the wayside when you realize how tough times are globally. People take fewer vacations looking for inexpensive entertainment within their community and at home. Also, having built 6 websites, despite some of the negative criticism I've heard, the WWE site is quite impressive. I went in the back end of the database and saw how complex and intricate the site is. Fans can go to Youtube or watch on cable, but they are missing a tremendous amount of content that can only be accessed easily on the WWE site.

    It will take at least 2 quarters to see where WWE is going. My next quarter projections show subs at between 800-850,000 and then going over the top (i.e. past break even) with the 1st Q 15 and numbers from the April Wrestlemania event.

    Appreciate again.
    Sep 21, 2014. 12:38 PM | 2 Likes Like |Link to Comment
  • World Wrestling Entertainment: Why I Won't Be A Shareholder Again Anytime Soon [View article]
    Michael your analysis is very detailed, however the numbers of network subs at this point is pure speculation on anyone's part. Emmanuel Lemelson, one of the very best hedge fund managers, picked the top of WWE to short and then reversed course buying the stock near the bottom and is still holding. His feeling is that the company has made some key changes that have increased the intrinsic value of the company. Further he states that until the fundamentals emerge no one truly knows the long term outlook for WWE. WWE's transition to streaming is much like the Netflix model in that to adapt the future you have to sacrifice part of your existing business. With that transition you have economies of scale in that less costs associated with traditional media forms leads to increased profitability. Revenue net bottom line for one new subscriber is substantially higher than what one new viewer to a cable station adds. Also, like Netflix, WWE has now the best of both worlds, as those who don't want to subscribe can watch it over cable. Finally, WWE already has content whereas Netflix had to develop it over time. The law of large numbers will ultimately prevail and I see WWE going way past break even on streaming after the next Wrestlemania event.
    Sep 20, 2014. 12:36 PM | 2 Likes Like |Link to Comment
  • Advanced Battery Technologies, A Real Company Battle Against an Incredulous Anonymous Short [View instapost]
    John, if you just outted the guy who is VVR I think the S.E.C. would be interested in that. As far as your personal attack on me, I will not stoop to your level. I will only say I have a special needs son and I have sacrificed the past 10 years to insure he gets everything he needs. I'm semi-retired and quite lucky to be where I am. The fact I can start a business for a children with those needs is something I'm extremely proud of.
    Apr 20, 2011. 01:26 AM | 2 Likes Like |Link to Comment
  • Why The WWE Network Will Survive And Prosper [View article]
    Much better presentation by George although it wasn't just a Q&A as was the Wells Fargo conference. George laid out a better vision on the drivers of growth for WWE. Also, what really caught my eye was that George said that there will be an announcement by Vince as to additional content in the near future. He also said that if he was to announce it now, 'Vince would kill him'. Nickel to a donut it could be WWE Network adding a weekly hour Steve Austin Podcast. Phenomenal!
    Dec 9, 2014. 12:36 PM | 1 Like Like |Link to Comment
  • WWE And Why The Network Will Most Likely Succeed [View article]

    Hopeful definition is below. The way I use the reference is that there are wrestling fans worldwide and there are more people on the internet by over 3 to 1 than who view cable. Law of Large Numbers means more exposure to the fan base more subscribers to the Network. It's just a matter of time as nothing happens over night.


    "Word Origin

    noun, Mathematics
    1.
    the theorem in probability theory that the number of successes increases as the number of experiments increases and approximates the probability times the number of experiments for a large number of experiments."
    Dec 3, 2014. 10:09 PM | 1 Like Like |Link to Comment
  • WWE's Narrow-Minded Focus Is Alienating Fans And Investors [View article]
    Edward appreciate the feedback. I've been going to semrush.com and from the stats the downloads not directly to the site are off generic search results. The PPC is minimal worldwide. So your comment about aggressive marketing is extremely important. I think as they see more people on the network and/or viewers through their new cable deals that's when PPC and more importantly advertising budgets for cable increase. I think the emphasis short term is trying to bring costs in line with revenue.
    Nov 25, 2014. 02:38 PM | 1 Like Like |Link to Comment
  • WWE Network's Temporary Free Price Is A Last Ditch Effort To Grow Closer To Netflix [View article]
    Michael the one thing we do agree on is the product is overexposed. This leads to only hardcore wrestling fans subscribing to the Network.

    Do you or anyone have a stat on how many hardcore worldwide wrestling fans there are? Or how many more households of hardcore fans WWE is now exposed to due to going over the top?

    As far as Lemelson, or in fact myself, not being wrestling fans but investors, we would look less at the small picture and focus on the big picture. The product might be inferior, but all that does is show us financials numbers that only can be improved on. I see plenty of cash in the bank (with the $50 mil injection) and an almost 4% divvy guaranteed for sometime to come. With a heavy investment in the Network of $75mil, the balance sheet actually is in pretty good condition to support any continuing losses that should end with this upcoming quarter. As PPV's were on the downswing, McMahon had to make a choice of either going to a cable network or OTT. The cannibalization would have happened in any event, but taking advantage of technological advances is a prudent move. The fact that WWE was ahead of the curb with CBS and HBO following shows the direction of the market. Keep your cable but add to your revenue with hardcore fans. One of my other focuses is the management team that you do not see. Check the backgrounds of Elana Sofko, VP Digital Content, Strategy and Ops and Roberto Levin, Sr. Manager E Commerce Marketing to just to name a few. Hiring Lou Schwartz as Chief Digital Officer fills the void when Perkin Miller left in April to the NFL. You need a Chief to provide direction to the tribe. It becomes more than just numbers short term where you focus on where they are going and what it takes to get there. I see the pieces coming in place despite how many mistakes they made along the way.

    Michael I appreciate your feedback as it provides the other side to what I need to see. Having a large investment in WWE I definitely need to see both sides.
    Nov 16, 2014. 01:56 PM | 1 Like Like |Link to Comment
  • World Wrestling Entertainment: Looking Ahead At Its Upcoming PPV And Q3 Earnings [View article]
    Michael in your analysis you are factoring out other sources of cash such as short term investments. The Companies liquidity is not in question and WWE is still well funded. What everyone is questioning is whether the Network will survive and only looking at the next quarter. The 1st Q 15 will be the telling point from an ongoing basis as their international expansion will be all but complete and WrestleMania 31 at the end of March will give them a base sub count.

    Watching a CNBC interview with a guy from Mangrove Partners this morning, the information he provided made no sense as he stated his company knows the sub count this quarter will be disappointing. Further he stated his companies research showed the product is not popular. It was self serving knock on WWE as his company is short. The stock dropped substantially on this forecast. No reasonable basis much like the prior day when on a wrestling site came out with a rumor that WWE will pass 1 million subs when reporting the end of the month.

    Bottom line no one knows what the numbers are and there are too many variables to still be determined. Long term investors need to look past the next 2 quarters and focus on the beginning of next year. I base my long term investment on the law of large numbers with more exposure to more fans via over the top and that WWE has survived for over 30 years and is the only wrestling franchise recognized worldwide. Simple for me....
    Oct 21, 2014. 08:33 PM | 1 Like Like |Link to Comment
  • Could WWE's International Network Rollout Send Shares Higher? [View article]
    Adam your article is right on. Also, I was able to download Google Organic Search Traffic results from the US (semrush) and the indicators are extremely positive. At it's peak in April 2014 (at the time of WrestleMania) web search traffic from google to WWE.com, just in the USA, was 3,434,632. Then on August 17th with the SummerSlam traffic spiked up to 4,357,057. This represents a 26.9% increase in traffic. The numbers since August 17th has been extremely steady. Although, only V McMahon and Barrios, have access to the actual site numbers, the above information is critical in determining how site traffic is picking up. Most people go directly to the site so the numbers below, although large numbers, are only indicative as to what's happening in total.
    Aug 29, 2014. 02:56 PM | 1 Like Like |Link to Comment
  • World Wrestling Entertainment: A Short SWOT Analysis [View article]
    Finally think Netflix as the model WWE is using is similar. Only difference is WWE knows what Netflix mistakes were and will not repeat them. Shorter time frame to hit that b/e point as a result.
    Aug 16, 2014. 12:06 PM | 1 Like Like |Link to Comment
  • 8x8 Is The Host With The Most [View article]
    Bought EGHT originally at .45/sh. The start of the transition from residential to commercial was slow and painful at times. The management of this company has been smart enough to recognize when transition is necessary to lead to further growth. Going from a linear to parabolic is the next step. Building up cash and acquiring other smaller concerns that are aligned with their growth strategy is key to any future appreciation in this stock.....
    Aug 2, 2013. 01:35 PM | 1 Like Like |Link to Comment
  • U.S.-Listed Chinese Stocks - Gravely Mistreated & Far Undervalued (Part 2) [View instapost]
    Kurt, excellent articles on Chinese stocks. Many are easy targets for shorts and then the vultures follow with lawsuits.
    May 1, 2011. 03:38 PM | 1 Like Like |Link to Comment
  • Advanced Battery Technologies, A Real Company Battle Against an Incredulous Anonymous Short [View instapost]
    John attack me all you want...it means nothing to me. Check my background and you will see I have nothing to hide....Although it appears you already have. No one can same the same about VVR though.
    Apr 20, 2011. 01:39 AM | 1 Like Like |Link to Comment
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