|By PR Newswire||
|April 9, 2014 05:00 PM EDT||
SOUTHBOROUGH, Mass., April 9, 2014 /PRNewswire/ -- Lemelson Capital, LLC, a global private investment research firm, today is reiterating its "sell" position on the common stock of World Wrestling Entertainment (NYSE: WWE).
This sell guidance follows the announcement of the firm's previous March 17, 2014 sell position on the stock. Since then, WWE has experienced a substantial correction, falling 27 percent, from a $30.37 March 17, 2014 close to $22.21 today.
Despite this, Lemelson Capital today reiterates its position that the stock remains overvalued and is poised for still further downward correction. The firm reiterates $8.25 to $11.88 as fair value for the stock based on the company's current revenue, profitability and other company and industry factors and trends.
"WWE is facing multiple challenging factors, including an inflated trading value and negative trends in its historical growth, suggesting that the downward slide in the stock may continue," said Father Emmanuel Lemelson, the firm's Investment Manager.
Lemelson Capital Management's March 17, 2014 report has been cited as a factor in the stock's substantial downward correction. In that report, Lemelson Capital reported that "the 10-year earnings growth rate of the company is -17.3%. The five-year earnings growth rate is something more substantial at -46.2%. The one-year earnings growth rate is a remarkable -91.6%." At the close of the market on April 8, 2014, despite the roughly 27 percent correction since March 17, 2014, WWE is still trading at a price-earnings ratio of about 607.
Lemelson Capital Management, LLC is a private investment research firm focused on deep value and special situation investments. The firm is based in Southborough, MA.
SOURCE Lemelson Capital, LLC