On May 30th it was announced that the Los Angeles Clippers had been sold to former Microsoft chief executive Steve Ballmer for a whopping $2 billion. The bidding war for the Clippers benefited Madison Square Garden (NASDAQ:MSG) immediately, as the company's share price skyrocketed 34.4 percent from its May 7th low of $48.36 to $65 per share.
(click to enlarge)
Why the dramatic market correction? It turns out that professional sports teams were grossly undervalued. Prior to the Balmer agreement, Forbes had notoriously valued the Clippers at $575 million, nearly four times less than its sale price. The New York Knicks, owned by MSG, were valued by Forbes at $1.4 billion, which quickly resulted in the substantial market...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|