Madison Square Garden
Thesis
Madison Square Garden is trading in the low $20s with no debt and $300 million in cash, making it an attractive investment. The company is refurbishing its arena and has valuable assets in the form of two sports teams, the Knicks and the Rangers, which could be worth significantly more than the current share price.
Did it work?
worked
confidence: high
The long thesis argued MSG's shares were deeply undervalued relative to its cash, debt-free balance sheet, and the intrinsic value of the Knicks and Rangers. The stock returned +1846.7% (nearly a 19x), decisively confirming that the assets were worth far more than the prevailing share price. Regardless of the unknown elapsed time, a return of this magnitude validates the core undervaluation thesis.