MSG

The Madison Square Garden Co

TMT


Presented:11/05/2018
Price:$274.63
Cap:$6.52B
Current Price:$219.38
Cap:$5.25B

Presented

Date11/05/2018
Price$274.63
Market Cap$6.52B
Ent Value$6.57B
P/E Ratio54.48x
Book Value$106.53
Div Yield0%
Shares O/S23.75M
Ave Daily Vol252,132
Short Int2.71%

Current

Price$219.38
Market Cap$5.25B
The Madison Square Garden Co. engages in the provision of live experiences, which comprises of celebrated venues, legendary sports teams, exclusive entertainment productions, and entertainment assets which include dining and nightlife venues, and music festivals. Its brands include Knicks, Rangers, Liberty, Westchester Knicks, Hartford Wolf Pack, Counter Logic Gaming, Hulu Theater at MSG, Radio City Music Hall, The Beacon Theatre, The Forum, The Chicago Theatre, Christmas Spectacular, Rockettes, Boston Calling, and TAO Group. The Madison Square Garden Co. 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 (MSG)

Highlights

The presenter is long shares of Madison Square Garden (MSG) and sees the likely spin-off of the sports business in a tax-free transaction (1H 2019), per management’s commentary on the progress being made toward that end. Whether investors, or the public, like Jim Dolan or not, it is the presenter’s opinion that he has a good record of making business decisions that create value/build wealth. While the Dolan family would maintain majority voting control in both of the companies through the ownership of Class B shares, there appears to be a valuation disconnect with MSG trading at ~$275 (a $6.5B market cap). On a sum-of-the-parts (SOTP) basis, MSG would be more fairly valued at $400 (a ~$9B EV).

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Idea Discussion

Commentor 1 - 2 weeks ago

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