Horizontal Channel Breakout Confirmed In Madison Square Garden Stock
A horizontal channel breakout has been confirmed in Madison Square Garden stock. Large players are accumulating the stock so I’m running with the Bulls and taking a long entry myself today in this stock.
CKO Kickboxing has been growing in popularity and is now in Madison Square Garden.
Madison Square Garden stock could be like the Amazon of the sporting world. You get to invest in a little piece of CKO Kickboxing, basketball, college basketball, boxing, tennis, bull-riding, and more.
The EPS has grown by an incredible 57.39% over the past year and the EPS growth is accelerating. Based on estimates for the next 2 years, MSG will show EPS growth of 159.35% on average per year.
Madison Square Garden Stock
What a beautiful chart. Note that my pocket pivot screener did not detect any signals which I take as a sign that the stock is not over-heating from irrational exuberance. The Effective Volume study shows large players are accumulating Madison Square Garden stock and the Twiggs Money Flow confirms that accumulation.
The entry doesn’t look very good right here but I consider the long horizontal channel as an energy field where energy was building and then POW! We have the breakout. I’m going against my New Year’s resolution to not chase, and I’m going to chase this stock higher.
UPDATE: The stock did in fact form a pocket pivot signal on July 20, 2017.
Madison Square Garden Stock Review
- Profitability (Return On Assets, Return On Equity, and Profit Margin)
- Valuation (P/E, Forward P/E, PEG, Book Value, Price to Book Ratio)
- Growth (EPS and Revenue)
- Health (Current Ratio, Quick Ratio, Debt to Equity, Altman-Z Score)
Profitability in Madison Square Garden is mixed which is why I gave them a rating of 2 in this category. The company has a Profit Margin of 111.14%. This is among the best returns in the industry. The industry average is 104.69%. Madison Square Garden outperforms 84% of its industry peers. Madison Square Garden's Return On Asserts of -1.12% is worse than the rest of the industry.
Valuation received a rating of 1 as the Price/Earnings Ratio is negative. In the last year negative earnings were reported. Besides the negative Price/Earnings Ratio, the Forward Price/Earnings Ratio is also negative. No positive earnings are expected for the next year.
Growth is where Madison Square Garden really excels. The Earnings Per Share has grown by an impressive 57% over the past year. Based on estimates for the next 2 years, the company will show a very strong growth in Earnings Per Share. The EPS will grow by 159% on average per year. The EPS growth is accelerating: in the next 2 years the growth will be better than in the last year.
Health is another strong category for Madison Square Garden which has a Current Ratio of 2.04. This indicates that the company is financially healthy and has no problem in meeting its short term obligations. When comparing the Debt to Equity Ratio of 0.00 to an average industry Debt to Equity of 0.77, Madison Square Garden is way less dependent on financing that its industry peers. The Altman-Z score of 2.31 means there is only limited risk for bankruptcy at the moment.
Latest posts by Lance Jepsen
- Wheaton Precious Metals Stock Oversold, Swing Long Setup - August 14, 2017
- Granite Construction Does Symmetrical Triangle Breakout On Pocket Pivot - August 1, 2017
- Bitcoin Forks Into Two Currencies As Coinbase Disables Withdrawals - August 1, 2017