Mason Hawkins Chops Madison Square Gardens as MSG Sells LYV
A spinoff of Cablevision Systems Corporation, the Manhattan-based Madison Square Garden Company was incorporated on July 29, 2009. With a market cap of $4.28 billion, a P/E of 40, and a P/S of 3.28, Madison Square Garden Company is an empire of brands, venues, and professional sports teams, operating through three business units: MSG Entertainment, MSG Media and MSG Sports. MSG Sports owns and operates sports franchises, including the New York Knicks, the New York Rangers and others.
GuruFocus performed a thorough checkup on the financials and performance of Madison Square Garden Company and found one severe warning sign, that its asset growth is faster than its revenue growth. Two other warning signs are that MSG’s price is close to its five-year high, and its P/S ratio (3.3) is at its two-year high of 3.3.
Here’s the GuruFocus analysis of MSG.
Mason Hawkins is a buy-and-hold Guru who invests in large positions of individual stocks and holds them for a long time. His reduction of MSG comes one day before Madison Square Gardens Company sells its stake in the world’s largest concert promoter, Live Nation (LYV), for $44 million. According to Bloomberg, MSG Chairman James Dolan resigned from the Live Nation board of directors last month.
Other investor Gurus who added major shares of MSG on Dec. 31, 2012, include Steven Cohen for 341.26%, Murray Stahl for 76.85% and Jim Simons for 54.69%. However, on the same day, Gurus George Soros and Paul Tudor Jones sold out their MSG shares.
Mason Hawkins' Top Buys, Top Sells, Top Holdings:
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