Jeremy Lin’s impact on Madison Square Garden (MSG) stock has always been intriguing.
You’ll recall, when he first hit the scene back in February of this year, when Linsanity really began to kick into high gear, financial analysts started noticing the otherwise unimpressive MSG stock steadily begin to rise.
Slowly but surely, it ticked up from its $29.49 start point and, as Lin continued to play well, the stock continued to climb.
Even when Lin got injured in March, the wave of momentum that he had essentially singlehandedly created carried over – ensuring that MSG stockholders could continue to profit off Linsanity long after Linsanity officially wrapped up.
This graph by way of Foster Kamer of the New York Observer offers a pretty fantastic look at the Lin Effect:
Everything went along relatively smoothly until reports that the Houston Rockets were going to make Lin an offer surfaced.
At that point, for the first time, it began to look like him re-signing with New York wasn’t a foregone conclusion. As noted by Cork Gaines of Business Insider, beginning with when the Rockets speculation started and ending on Wednesday, July 18 – MSG stock dipped around 8.5 percent. Then, between Wednesday’s close and Thursday’s close, shares fell by 12 cents (fell in after hours trading, too). Darren Rovell of ESPN noticed the same thing.
MSG stock is now down 8.4% over the last 5 days as the NASDAQ has been up 3.4%. Those in the know says Lin drop makes no sense.— darren rovell (@darrenrovell) July 19, 2012
There are varying opinions on how much Lin is impacting the MSG stock because, well, stock prices are just a big combination of nothingness. They’re rooted in nothing and are just a tool that folks with sway can utilize in an effort to get richer. But it’s fun to attribute the MSG price decline to Lin so, until we can’t anymore, that’s what we’re going to do. (The price dip very well could be the result of Lin’s departure; anyone who says with certainty that the price falling has nothing to do with Lin is full of…)