Jeremy Lin Leaving NY - Good for Stocks?

When New York Knick fan favorite Jeremy Lin made his first start on 2/9/12 the price of Madison Square Garden ($MSG) shares were $29.49. In the following months the stock took off and rose as high as $39.57 in early July even though the team was not successful in the NBA playoffs. Since that time the stock has been down 11 out of 12 days as there was speculation, which became reality, that Lin was going to leave the Knicks for another basketball team.

The 30% rally from the time Lin started to the recent high easily outpaced the gain of only 2% for the S&P 500. So was the rise in the stock that owns the NBA's New York Knicks based on a no-name guy from Harvard that started less than 30 games?

There are many that believe so and that is why the stock has taken such a hit in the last two weeks. I on the other hand never bought into what was termed, "Linsanity". I feel it is a great move the over-hyped player is gone and it will eventually be a boost for the shares of $MSG. By not matching a ridiculous $25 million offer for Lin, the Knicks made some fans angry, but financially it was a great move.

As a matter of fact buying near $35, closed today at $35.27, is a solid investment for long-term investors. Let the Houston Rockets deal with the unnecessary hype that this kid from Harvard that will be a bust brings to town.