TWJC: The Beginning
Royal Rumble Winner
I compared CAT to the WWE because, as I said, sometimes the economic cycle hurts. Sometimes it just drops. Also, CAT may have been over price, but it dropped a LOT more than it should have. Luckily, that created a fantastic buying opportunity.TWJC The Beginning:
Now I am a very liberal person when it comes to reading into other ppl's post and possiblitites of other meanings than what i might see originaly, but your post is an economic one, one which I minered in Along side my B.A. in Poli. Sci. at U.T. Austin
Cat. sales were up 31% B/C of heavy equipment sales by dealers in the perid ending oct. 31st. Sales in N. America rose 38%, beating the 26% in the period ending 9/30. This was due a 32% jump in sales in SE Asia, EU, and Afrca. The concerns of EU's. spreading debt crisis didn't effect Cat's growth as its value remained stable due to investor focus by continent.
Cat is the worlds largest heavy equip maker, and one of the top 6 largest industries driving the U.S. economy.
The 30% drop you were referring to was off a year high in may, and it was due to a valuation adjustment in-line with the stock market.
How you are a comparing that with WWE is beyond me, but I will explain the WWE in the post above.
TWJC The Beginning:
Continuation from my pervious post:
As to your claims about Ratings, Buy rates, and attendance not being important or relevant today: Exactly what are the main sourses of revenue for the WWE? How are their financial reports based on?
People buy tickets based on their attitude for the product. If the product is strong, than regardless of the economy, they will buy tickets. In-fact, in 2009, when the recession was at it's peak, WWE had it's best year financialy since 2001. Entertainment is not one of the things that tend to suffer during a recession. It's the housing market, business R&D investvent, the airlines industry, the buying of new goods and equipment, stock investment, and the price of imports vs exports due to the valuation of the dollar.
The only how the WWE is effected by a recession is b/c of the devaluation of the Dollar, bringing it's purchasing power and market share down.
but as a percentage of people buying WWE's product it's self has remained stable.
TWJC THE BEGINING:
My Last Continuation:
The WWE was a weaker company 03-07, durring an economic rising period following the 2001 recession caused by the burst of the tech. "tech bubble".
during the "housing bubble" burst that crahed the banking system in oct. 08, leading to the current recession, the WWE was doing better than the previous years and continued to grow through 2009 at the hieght of the recession.
PPV buys did not suffer, attendance was up, and ratings were better than today.
The amount of house holds with TV's goes up each year and that causes an adjustment in the veiwer percentage as a rating. 5 million viewers watching 10 years ago would bring a 4.0, today it would garner a 3.3. And ratings drive one of the top two main sources of revenue because it translates into advertizing dollars.
And PPV buys are down since 2009, the height of the recession, (exception WM27) and it has to do with the amount of viewers that find the product worth the money.
Of course you use ratings because they bring in revenue, however, in this ever changing environment, you can't use it as the only source of "popularity". There are ALSO more free stream channels. Hell you don't even have to download a streamtorrent or any kind of torrent software anymore, you can find tube channels that have the PPVs. Again, the markets change and they don't always correlate with the market.
I also have a minor in economics, however I also study business. Business is more applicable to the WWE than Poly Sci. I'm not going to argue who's smarter. Typically looking at things as they happen is pretty subjective. It takes years to fully understand something.
In my opinion, maybe WWE is less popular, maybe it's not. Maybe it's not because maybe it's not a statistically significan amount. Maybe it's not because of random fluctuations. Or maybe it's not because the audience is being spread out so much more. With the recession came people finding new ways to get their fix. I don't even have TV. I watch everything online. A lot of people are like me because 15 bucks a month for 6meg is cheaper than 40 a month for shit mediacom.
Your viewpoint of the economics of the situation aren't in a broad enough scope. Think of everything that could possibly be happening.
Also, what are you basing the statement of "weaker company"? Income? Cash flow? Stock price? Ratings? Income can be manipulated by accountants, same thing with cash flow. The stock of WWE is mostly held by a few people. WWE isn't a stock that is going to fluctuate very much. It's essentially been in the same price range for the past 10 years.