The beautiful thing about investing is that opportunities are everywhere. Unlike most things in life, you never have to swing if you don’t want to.
Many of the names I've covered in past issues, especially in the portfolio, are still trading at attractive levels, so I won't revisit them here.
This list is something different. Ten ideas I'm currently following, covered at a high level. Some are long-term compounders, others are mean reversion plays, and a few are special situations.
My goal here is to paint broad strokes across a wide range of ideas that have caught my attention. I'm not specifying time horizons or diving into full risk analysis. Think of it as a digestible starting point, not a full thesis.
Let's get into it.
Disclaimer: This is not financial or investment advice. I'm sharing my personal investment decisions and reasoning for educational and informational purposes. Always do your own research before making any investment decisions.
I. Madison Square Garden Sports ($MSGS)
Sports teams are rarely great investments. Ownership is usually a flex for the ultra-wealthy, and honestly, there's nothing cooler than saying you own your favorite team. Madison Square Garden Sports turns shareholders into partial owners of two legendary franchises in professional sports. Perfect for bragging rights at parties.
What does Madison Square Garden Sports do?
Madison Square Garden Sports owns the New York Knicks and the New York Rangers, two of the most valuable and iconic franchises in professional sports. Both play out of Madison Square Garden in New York City.
Why could this be an opportunity?
The financials alone won't impress anyone. MSGS generates about $1B in revenue, carries net debt, and produced just $53M in free cash flow over the last twelve months. On paper, it's not pretty. But MSGS is a special situation. It trades on franchise value, and that's precisely the opportunity.
The company recently filed a confidential Form 10 registration statement with the SEC to split into two separate, publicly traded companies through a tax-free spinoff. The logic is straightforward: the Knicks and Rangers each have distinct valuations, and bundling them together obscures that. According to Forbes, the Knicks are worth roughly $9.75B and the Rangers around $4B, putting combined franchise value near $14B. MSGS currently has a $9B market cap. If the spinoff helps the market price each asset more accurately, there's over 50% in potential value to be unlocked.
And then there's the Knicks, my favorite basketball team, who just reached the NBA Finals for the first time in 27 years. Winning a title would be a landmark moment and would only push franchise value higher. Continued success would only compound the upside.
New York Knicks Fundamentals, Source: Forbes
The next nine ideas are where it gets really interesting:
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