Madison Square Garden Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of arena-owner Madison Square Garden (NYS: MSG) rebounded higher today, gaining as much as 14% in intraday trading after a deal was reached to end the NBA lockout.

So what: When you own the New York Knicks, the iconic arena that the team plays in, and the TV network that televises it, it's pretty lousy news if there's no basketball season for fans (and advertisers!) to spend their money on. So with the announcement that the two sides have come to an agreement and games will start on Christmas day, there's little surprise that investors are feeling bullish about the stock today.

Now what: As my fellow Fool Jim Royal laid out earlier this year, even though the Knicks is a very notable slice of MSG, the business is much broader than that. That notwithstanding, I'm sure investors wouldn't have been a bit happy if the lockout had continued. While many basketball fans are looking at the matchups that have been set for Christmas day as a nice holiday gift, investors in MSG can look at the on-again season the same way.

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At the time thisarticle was published The Motley Fool owns shares of Madison Square Garden. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

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