+ Watch MSG
on My Watchlist
don't know if it will outperform the market, but as a risk versus reward situation, this is a good situation
MSG has an A for financial health and a PEG less than 1 on Morningstar, so it's one of my long picks.
Aside from the huge cash flows provided by the media group, the company owns a ton of real estate in prime locations as well as huge intangible assets like the Knicks and Rangers. The stock is reasonably priced from an earnings perspective with a PEG of 1.15, so the additional value of those assets might not be priced into the stock yet.
New York!! the teams they own are good right now, attendance is high making advertising more expensive than it already is.
Revenue will bounce back big time.
Take away the basketball lockout, think of how many famous artists, performers, venues, sports players think of MSG as gods palace? This company will never die "the garden" will always prevail as long as humans walk the earth.
Madison Square Garden gives you ownership of New York Knicks, New York Rangers, New York Liberty, Madison Square Garden, other venues, and an extensive television segment. I like the stock for short and long term. Check out my article here:http://seekingalpha.com/article/271546-madison-square-garden-represents-good-short-term-better-long-term-buying-opportunity
The cable deals....
Gonna go huge
P/E indicates a long-term weakness
I'm very bullish on this stock.The company owns the NBA's most valuable franchise, the NHL's most valuable franchise, several other professional sport teams, Madison Square Garden, and a couple of other significant venues. Additionally, MSG's media segment is a very strong cash generator that really drives their business.After a decade of poor management and below average teams, the Knicks acquired superstars Carmelo Anthony and Amare Stoudamire over the past year. Every home game is a near lock to sell-out for years to come, and additional revenue will come from playoff tickets and increased tv viewership, conditions that haven't been in place for this team in years.Madison Square Garden (the arena) will be undergoing renovations over the next two years, which will cost $900+ million, but will ultimately lead it to increased revenue from additional luxury suites and other amenities.There have been talks of the company being bought out after the two-year lockout period expires in 2012. Sports teams are typically sold at a heavy premium to actual value.
Went to a Rangers game a few weeks ago while MSG simultaneously had a Sesame Street on Ice show in a different area. The whole place worked so well that if it hadn't been for the massive baby stroller parking area I wouldn't have known two mega shows were running at the same time! That kind of seamless management is one of a kind an urban Metropolis such as Manhattan. Include the fact that the Knicks can only get better from the lows of the recent years, and the Rangers are decent enough, the Garden itself should have constant sell-outs for quite some time. Also, the construction renovations are coming along quite nicely and MSG will soon be a state-of-the-art sports complex.Not to mention the TV network system that some Fool detailed as MSG's true cash cow. Sounds like an undervalued spinoff to me.
Barron's Roundtable 2011 Mario Gabelli's pick
Here's the buy rec:http://www.fool.com/investing/general/2011/01/28/rising-star-buy-madison-square-garden.aspx?source=ihpsitota0000001&lidx=10
11 o'clock. diversity. more upside than downside. Would accumulate if it drops.
This company has prime assets that the market isn't valuing properly. The Knicks and Rangers are two of the more valuable franchises in their sports. Add in one of the most famous arenas in sports, music, and theatre, in the world's most famous city, and you have a real special set of assets. Then, throw in Radio City Music Hall, the Beacon Theatre, etc., and the cable networks (MSG Network) to broadcast everything, and the value the market places on this company doesn't look right. Of course, that's what I like to call the "Dolan Discount." Management is a crucial part of any company, and you've got to be concerned about management here, but the value of the assets this company owns seem to protect on the downside. And the upside seems pretty intriguing if Dolan can get out of his own way.
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