Madison Square Garden Entertainment ($MSGE, $61.55): Born In A Crossfire Hurricane


Key Points

  • Madison Square Garden Entertainment is a diversified live entertainment and restaurant play centered in New York, Las Vegas, and Chicago.
  • The company recently merged with Madison Square Garden Networks, which is one of the most desirable regional sports networks in the world and brings a lot of free cashflow to the table.
  • This pair-up potentially positions the new entity for lucrative sport betting partnerships in the likely event that online sports betting becomes legal in New York State this year.
  • The company is trading at a significant discount to book value, and the shares have suffered significantly as Delta variant fears have risen. We see evidence that Delta has peaked.
  • The combination of extremely high quality and mature live entertainment assets and innovative growth initiatives that have the potential to disrupt live the future and economics of live entertainment make this an attractive long-term investment to capitalize on re-opening, even if it is delayed.

“But even lying on the ground, it is a marvel.”

-Pliny the Elder, referring to the Colossus of Rhodes

The Colossus of Rhodes was constructed after a harrowing year-long siege to celebrate its peoples’ heroic resistance. The expensive siege weapons left on the field of battle by the ...
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