One To Watch World Wrestling Entertainment, Inc. (wwe)

This little gem has flown under the radar for some time now and is worth looking at in more detail. While other operations in this sector come and go like fashions, WWE (formerly WWF) has increased its longevity and could be something of a cash cow after solid investment in the business in years gone by.

 

This must be a tasty morsel for a larger entertainment group? Seems to be strong underlying demand for the shares. Interesting!

Little surpised at a dividend yield in the region of 1.25% as I thought this would have been similar to a mature cash cow.

 

We should have spotted the up trend emerging last November! A perfect chart. It even has periods where profit takers have kicked in before the buyers come in and take out the loose stock.

 

Looks to me as though these talks have been bubbling away in the background for a long time now:-

https://www.cnbc.com/2018/05/17/wwe...-smackdown-and-raw-tv-deals-negotiations.html

Real changes afoot at WWE.

 

Content is king in the world of sport - just look at the UK Premier League TV rights, they have increase x10 over the last 20 years. Will WWE remain independent for much longer?

 

I have been thinking about this one - if the company can constantly attract new audiences then the old WWE footage could be like gold dust. They have literally years of back content which they can roll out to new audiences. How do you value this kind of content?

 

The World Wrestling Entertainment Inc share price has performed exceptionally well since the start of the year, moving from around $30 against the current price of $84. There was a period of consolidation towards end of July but since mid-August the shares have been in an upward trend testing new all-time highs. Is there something going on behind-the-scenes with this one? Could it be a bid target?