WWE On Monster Run, But Could It Be Slammed?

World Wrestling EntertainmentWWE
has been a stellar performer in 2014. After ending 2013 at $16.58, WWE was nearly up 100 percent when it peaked at $31.98 in March. Since peaking at the level, WWE has retreated to the $28.00, which still puts it up 70 percent for the year. When compared to minimal gain in the broad market, this makes the move all the more impressive. Besides profit-taking, another reason for the decline from the highs may be attributed to an article on
Seeking Alpha
published on March 17. The author believes WWE may be severely overvalued. The basic premise being that the financial performance has been trending down for multiple years and that excessive dividends and losses may potentially erode its financial profile. The author believes the execution by the management has been sub-par and consistently underdelivers. Although the market did not immediately react to the article, it has declined from its March 17 close ($30.37) to its current level. That, coupled with some profit-taking from its monster run, may account for the decline from the all-time high. Ten days after the article was published, WWE bottomed at $26.28 and then rebounded to $30.39 on April 1. However, it was not able to close above the key psychological level of $30.00 on that day and has already given back a majority of the gains from the recent rally. For now, WWE may be heading back to its recent low at $26.20, which coincides with its March 5 low ($25.88). If it is unable to hold that level, it could quickly tumble another three points until its March 4 low ($23.55). Bulls are hoping for a return to $30.00 level and series of closes above it. If that takes place, WWE may gather enough momentum to return to its all-time high and beyond.

Posted In: Seeking AlphaWorld Wrestling EntertainmentLong IdeasShort IdeasTechnicalsMarketsTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.