Park West Asset Management Reveals New Position in World Wrestling Entertainment, Inc. (WWE)

Lead by Peter S. ParkPark West Asset Management recently reported a new passive stake in World Wrestling Entertainment, Inc. (NYSE:WWE). The stake represents a 6.5% ownership in the company, with an aggregate amount of slightly more than 2.03 million shares of  the company’s class A common stock.

World Wrestling Entertainment, Inc. (NYSE:WWE)

World Wrestling Entertainment, Inc. (NYSE:WWE) is a recognized global media and entertainment company. Its main revenue source is the development, production, and marketing of professional wrestling content, the company selling tickets to live events, at which merchandise is sold directly, and which are streamed online and/or televised. Generating steady revenues of around $480.00 million in the past 4 years, with $508.00 million in 2013 (5% more than in the previous year), but respective profits of only $2.80 million, significantly less than the $31.50 million earned in the previous year.

According to the company’s 2013 earnings press release, the decline in operating income was primarily attributable to increased investment in staffing, talent and marketing to support strategic content initiatives, including the launch of WWE Network - a recently announced new business plan that might generate significant earnings growth and substantial returns by 2015.

Analysts estimate losses of $0.16 earnings per share in the first quarter of 2014 and average losses of $0.10 for the whole fiscal year, but also expect a significant financial improvement for 2015, predicting  earnings per share of $1.13. The company almost quadrupled its share price year-to-date, hitting an all-time high of more than $30.00 per share as of March, 18. The current mean analyst recommendation is “Overweight”.

Although managers of World Wrestling Entertainment, Inc. (NYSE:WWE) are very positive about the company’s growth prospects, there is skepticism about how sustainable such growth is. Intrepid Capital Management, a mid-size value fund managed by Mark Travis, recently cut its exposure to World Wrestling Entertainment to 2.8 million class A shares worth $47.21 million, from the previous position of 3.26 million. Another fund holding WWE is Jim Simons‘ Renaissance Technologies, with an investment of $31.15 million in a total of 1.88 million class A shares outstanding.

Roughly 45% of Park West Asset Management’s equity portfolio sector allocation is invested in Services and Technology. In February 2014, the fund revealed an increased position of 1.5 million shares in Outerwall Inc (NASDAQ:OUTR), now owning 6.00% of the company’s common stock. Park West also holds 300,000 shares worth $36.38 million in Bio-Rad Laboratories, Inc. (NYSE:BIO.B) and 1.45 million shares worth $35.76 million in Newfield Exploration Co.(NYSE:NFX).

Disclosure: none

Recommended Reading:

Park West Asset Management Boosts Its Stake in ShoreTel, Inc. (SHOR)

Kyle Bass Says Why He is Bullish on General Motors Company (GM) and Nationstar Mortgage Holdings Inc (NSM)

Ted Kang’s Kylin Management Adds to its E-House (China) Holdings Limited (ADR) (EJ) Stake

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!