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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Wallace Rivers who wrote (41902)3/22/2011 10:42:05 PM
From: Jurgis Bekepuris  Respond to of 78523
 
WWE - You pretty much have to buy it for the yield at this price, since it does not seem to be priced for appreciation. On the other hand, the stock has traded substantially higher, so it's possible that it will run up again.

On the yield side, the company has enough cash to pay the divvy for two years with zero operating cash flows. Assuming current cash flows from operations, they can pay it for four years. There is zero debt on balance sheet. If you think that the business is not going to deteriorate from here, it might be a buy with expectation of dividend + some possible appreciation. Obviously, if business is good, they could pay dividend much longer.