Lemelson Capital, LLC, a private investment management firm, announced today that they had taken a stake in shares of WWE stock and called on the Board of Directors to replace the “executive management team” of the company due to a period of consistent losses, execution issues and material misstatements.
Less than two months ago, WWE stock had climbed to $30.37 per share on March 17th, and as recently at today, the stock had dropped all the way down to $11.33 per share.
The firm today also reiterated that fair value of WWE’s common stock is between $8.25 and $11.88 with current management in place.
“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'”
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