We see one of these as a spinoff buy

Article Excerpt

MADISON SQUARE GARDEN CO. $302 (New York symbol MSG; Shares outstanding: 23.7 million; Market cap: $7.2 billion; No dividend paid; Takeover Target Rating: Lowest; www.msg.com) is a sports and entertainment company that owns the New York Rangers hockey team, the NBA’s New York Knicks and several other sports franchises. It also owns or operates several entertainment venues, including Madison Square Garden and Radio City Music Hall. In June 2018, Madison Square Garden announced that it would spin off of its sports franchises from its entertainment group. The deal would be structured as a tax-free distribution. After the split, shareholders will own 66.67% of the new pure-play sports business; they will also hold 33.33% of the remaining live entertainment company. Madison Square Garden expects to complete the spinoff by the end of 2019. Meantime, the company’s revenue in its fiscal 2019 third quarter, ended March 31, 2019, rose 12.5%, to $517.2 million from $459.6 million a year earlier. However, if you apply a new accounting rule…