Opinions

Colin Stewart Madison Square Garden (D) MSG-N TOP PICK Jul 22, 2014

Entertainment, sports, media company that has a mix of 3 different core businesses. They own the New York Knicks and New York Rangers. People are putting very large values on sports franchises. They also own Madison Square Gardens, and have the development rights/air rights above the building, to build an office building or condo eventually. Thirdly have the regional sports network, which is somewhere in the neighbourhood of $350 million a year. The combination of these things could make it worth as much as $100 a share. Feels the Dolan family could make a bid to make it private at some time.

Colin Stewart

Owned

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$60.220

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TOP PICK

There is a potential for a break up of assets. The jewels are the networks. They have the third highest affiliate fee in the US. Sport networks MSG and MSG+. You will get more revenue from Madison Square Gardens since the 3 year renovations are now done and caused 5 month closures each year.

COMMENT

They are splitting off their entertainment and sports business. Some of the good news may already be priced in. He sold his holdings, but over the long-term it is still a good business to own, and probably does well.

PAST TOP PICK

(A Top Pick July 22/14. Up 42.1%.) Sold his holdings about 4-5 months ago, a little too early. His thesis was on the very valuable sports franchises they own.

HOLD

He is hesitant because the valuation is premium. Live entertainment will be a slow recovery. These stocks have bounced well off the bottom, but he would be less inclined to buy at current levels. Nothing wrong with holding if you already bought it.

WEAK BUY

Part of the reopening trade, which is still uncertain. Media arm is valuable. Interesting business. Trades at a high multiple. Good stock to buy when the market's getting crushed. Don't be aggressive with it.

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Colin Stewart Madison Square Garden (D) MSG-N TOP PICK Jul 22, 2014

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