So, what's the catalyst here? Is it possible that the market thinks that WWE's movie business is about to deliver a hit with its latest feature film, 12 Rounds, which was released to theaters today? So far, the initial efforts haven't been that great.

Remember See No Evil, released by Lions Gate Entertainment (NYSE: LGF)? It starred wrestler Kane as a maniacal killer. It didn't deliver a smackdown on the box office. And what about the Stone Cold Steve Austin vehicle The Condemned, also distributed by Lions Gate? That one definitely hurt shareholder value.

12 Rounds, which is distributed by News Corp. (NASDAQ: NWS), stars John Cena. I'm sure you've heard of him. He's the latest in a long line of top wrestling stars. He is this generation's Hulk Hogan (or should that be this generation's Steve Austin?). Cena's last film, The Marine, also brought to market by News Corp., didn't make a lot of waves at the box office, but this one seems like it could be a moderate hit. I have nothing to support that statement save for the marketing campaign. It has made the project look compelling to me.

Perhaps News Corp. has learned from its missteps with The Marine and is fully prepared this time around to competently leverage Cena's celebrity. Hopefully the same goes for WWE. You see, WWE has a little problem. It is known for paying a juicy dividend to its shareholders. As of this writing, the yield is nearly 12%. Only problem is, the cash flow surrounding the dividend isn't up to speed. I've discussed this before. WWE has invested a lot of money in its movie ambitions, and if it can score some big hits, then I'd imagine that the cash-flow challenges will be helped out. WWE's management continues to be confident about its dividend. In fact, it's been confident all along.

This is why I'm so fascinated by the rise in the stock. Considering all the cash-flow stuff, I can't be the only one wondering if investors are buying ahead of Cena's flick. Of course, there's also Wrestlemania 25 to consider. That's a big anniversary. Maybe investors are expecting that event to serve as a major inflection point, one that will push the stock into the technical stratosphere on the charts.

If WWE can get its movie business going, I mean really going, putting out hits that can compete with slates distributed by Disney (NYSE: DIS) and Time Warner (NYSE: TWX), then one can only imagine that the possibilities for developing franchises and licensing opportunities will be limitless. Maybe that's why Vince McMahon and company aren't so worried right now about the cash flow and the challenged payout ratio.

I can't wait to see how the box office for 12 Rounds shapes up. In terms of WWE stock, it would be difficult to say that anyone should consider buying now. A pullback is in order at the very least. And a lot of due diligence. You have to take a long, hard look at the statement of cash flows and determine if you are truly comfortable with it (i.e., if you believe management knows what it's doing and will truly be able to deliver robust cash flows that can sustain the yield). If so, then WWE may be a great long-term income investment.

Disclosure: I own Disney; positions can change without notice.