I don't get how this is so cheap, but it still seems like it wants to go lower. $1B in buybacks hopefully kicks in soon. Knicks look like they are headed in the right direction. That should be good for both MSG and MSGN.
Let's hope the stock performs better than their tenant,NY Knicks! The stock has had a nice run-up,the team
in total disarray! Phil Jackson has had too much success in the past to let this continue.The next year is so key,here's hoping!
That would seem unlikely, I think it found the bottom 2day at $62 I bought more. Give it Time. Do you realize what you own when you become a shareowner in this one?
Revaluation of underlying assets, upgrades, am "Activist Hedge fund takes a 7% of the calss "A" Shares, saying they wish to work with management, perhaps refinement/expansion of the Media aspect of MSG. on "the Works, " Colleagues are urging me to lock in profits be selling the position in entity. I'm somewhat dis-inclined to do so . Sure the recent gains didn't hurt, Mkt. pushing forward, same. My reservation: why sell the equity, when much of the gain is a simple revaluation of MSG. Hey, all throw this out there. Sure it's come a long way in a short time-period, however, this rise in share valuation is well Justified & not a result of market hype. This all conceptual / fundamental. I suppose this ultimately is my decision, however I invite input of the ? Are taking prices into acct. necessary, I have always held to the cliché: What's a stock worth? sometimes the answer is about what people are willing to pay for it. Respond in kind.: MSG being case specific, must I incorporate Tech analysis, I fail to see clearly why this is really needed, How much could it retract, given the Steve Balmer gift factoring in the aforementioned asserted Truths re:MSG
Donald Sterling, 80, lost that legal battle when the California probate judge ruled that the deal by Shelly Sterling to sell the Clippers to Ballmer could move forward.
The negotiated $2 billion sale price is a record for an NBA team.
First Gabelli made the statement two weeks ago. Now Barron's follows suit but raises the price to $100
"Madison Square Garden shares could be worth around $100 per share if you recalculate the market value of the different assets due to Steve Ballmer's deal to purchase the Clippers for $2B, Barron's contends in a follow up article. The Knicks could, easily, be worth over $2B at Ballmer's rate, the paper adds."
From the Barron's article today. You can read it if you google: madison square garden, barons
Madison Square Garden Shares Could Be Worth 75% More
Ballmer's Clippers buy prompts a reassessment of MSG's New York Knicks. Why MSG's parts could total $100 a share
Sum of the Parts
Assets Est. Value (mil)
sports network) 3,326
Entertainment business 262
Cash (Actual) 77
Total Value $7,743
Shares outstanding 77.2
Value Per Share $100.30
Current share price 57.78
Sources: Boyar Intrinsic Value, company reports
EASY to see how he gets there. In today's dollars, the construction cost of the arena would be 1bln. 820k sq. ft. of real estate at $850 per and you have 1.7 so its worth well over 2bln alone. The Knicks, Balmers bid for the Clips makes them worth 2bln at least. Rangers, Forbes had them at 750mln, they're now 1 bin easily. MSG network using an ebitda multiple of just 6x gets you to 2bln on the network (Univision ipo is shooting for a multiple of 11-15x ebitda). Cash on hand, the Forum in Englewood, Rocketts figure 1/2 billion total for those 3 things and NO DEBT. You're over 7 bin in market cap adding these assets up, on 77 mln shares outstanding…..7 billion/77 million = $90 per share
Instead of $1.4 billion, the New York Knicks are suddenly worth closer to $5 billion, the Lakers may be worth $4.7 billion, and the average team would be worth $2.2 billion instead of $634 million.
Of course, this is the extreme case and it is quite possible Ballmer overpaid just because he desperately wanted to own a team.
However, there are several reasons to believe the potential value of the franchise is much greater than the current value of $575 million, including a new television contract in the next few years and a current operating income ($15.0 million in 2013) that is actually below average ($23.7 million) despite being in the huge Los Angeles market.
hey vc....I missed the bulk of him discussing MSG on cnbc this morning and can't find the video anywhere....is that what he said this morning? thx. FF