The following press release was issued this afternoon: Lemelson Capital Announces Stake In World Wrestling Entertainment And Calls On Board To Pursue New Management Or Ownership Marlborough, MA, May 16, 2014 -- Lemelson Capital, LLC, a private investment management firm, today announced that they had taken a stake in shares of World Wrestling Entertainment (WWE) and called on the Board of Directors to replace the executive management team of the company following a period of consistent losses, execution issues and material misstatements. Despite the stocks roughly 63% correction since Lemelson Capitals original short call less than two months ago (from $30.37 on March 17 to $11.33 as of publication of this release), the firm today also reiterated that fair value of WWEs common stock is between $8.25 and $11.88. Lemelson Capitals original short thesis can be found here: WWE has affirmed that even with one million subscribers for its WWE network, the company stands to lose between $45 million and $52 million in FY 2014, which validates the original short thesis, said Emmanuel Lemelson, Chief Investment Officer of Lemelson Capital Management. This follows what we believe to be material misrepresentations by the company about both the performance and operating profit model of its WWE network, which the company has wrongly labeled a homerun, said Lemelson. Lemelson Capital today also called on WWEs Board of Directors to promptly replace the companys executive management team, or explore the sale of the business, and said that such changes are a necessary component of any successful strategy going forward. For example, promoting the WWE direct networks value to shareholders without a fair and accurate discussion of the implications to a traditional network revenue circumvented managements fiduciary responsibility as stewards of investors capital, and is part of what has emerged as a pattern over recent years. Further, there are no pending operational developments in the pipeline to offset these significant losses, Lemelson added. Lemelson Capital and its clients are long shares of WWE. About Lemelson Capital Management Lemelson Capital Management, LLC is a private investment management firm focused on deep value and special situation investments. For more information, see: lemelsoncapital
Posted on: Fri, 16 May 2014 23:43:36 +0000
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