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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