MSG

The Madison Square Garden Co

TMT


Presented:07/08/2019
Price:$281.49
Cap:$6.69B
Current Price:$219.38
Cap:$5.25B

Presented

Date07/08/2019
Price$281.49
Market Cap$6.69B
Ent Value$5.90B
P/E Ratio175.82x
Book Value$113.13
Div Yield0%
Shares O/S23.76M
Ave Daily Vol142,549
Short Int2.55%

Current

Price$219.38
Market Cap$5.25B
The Madison Square Garden Co. engages in the provision sports and entertainment business. Its sports franchises include the New York Knicks (Knicks), National Basketball Association (NBA), New York Rangers (Rangers), National Hockey League (NHL), New York Liberty (Liberty), Women's National Basketball Association (WNBA), Hartford Wolf Pack of the American Hockey League (AHL), Westchester Knicks of the NBA G League (NBAGL), and Counter Logic Gaming (CLG). It operates through the following segments: Madison Square Garden (MSG) Entertainment, MSG Sports, and Corporate and Others. The MSG Entertainment segment features its live entertainment events, including concerts, family shows, performing arts and special events, which present or host in its diverse collection of venues. The MSG Sports segment promotes, produces, and presents a broad array of other live sporting events, such as professional boxing, college basketball, college hockey, professional bull riding, mixed martial arts, esports, tennis, and college wrestling. The company was founded on March 4, 2015 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Live Nation Entertainment Inc (LYV), Madison Square Garden Co/The (MSG)

Highlights

The presenter is long shares of The Madison Square Garden Co (MSG), despite negative sentiment for the shares which he attributes mainly to the Knicks failing to win the draft rights to generational prospect Zion Williamson, and missing out on the major free agents available this month. While winning the draft lottery and/or signing superstar free agent(s) might’ve created a short-term boost to share prices, the presenter doesn’t think these better fortunes would have been meaningful to the value of the Knicks franchise or MSG. He considers the current ~$280 share price to be a ~20% discount to NAV and, following MSG’s upcoming spinoff of its sports business from its entertainment business, he sees upside to $380 and limited downside. 

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