Kevin Mak, CFA, Founder of Creek Drive Capital and Teacher at Stanford University of a course called, Financial Trading Strategy, discusses his thesis on Sphere Entertainment Co. (NYSE: SPHR).
Link to Kevin's $SPHR thesis: https://drive.google.com/file/d/1_jGx22O8NWRlb8zZZmuqMwfa-Ae3Y55o/view
Twitter: https://twitter.com/KevinLMak
Chapters:
[0:00] Introduction + Episode sponsor: Alphasense
[1:17] Sphere Entertainment Co. $SPHR and why it's interesting to Kevin
[3:36] Kevin's views on $MSGN and why that's relevant for $SPHR
[8:56] How Kevin values $SPHR
[15:20] More important from a revenue perspective: Residencies or Daily Airing of "Postcards"
[17:13] Sustainability of the movies at $SPHR / how much better is $SPHR than a quality IMAX?
[26:35] $SPHR customer demand
[29:10] $SPHR music residency economics / logistics / creating the buzz
[38:30] $SPHR customer draw as technology improves
[40:52] Outside revenue streams (ad revenue on outside of the Sphere) / cost to create an ad for the Sphere (Billboard comp) + economics of the Sphere
[47:51] Main difference between Kevin's $SPHR analysis and sell-side analyst targets
[49:58] Corporate governance and naming rights
[52:39] Capex
[56:04] Valuing the franchise model and pushback on multiple Sphere's - how do you find the right markets for Sphere + why did London turn down the Sphere
[1:03:25] Convertible debt / $SPHR valuation
[1:08:12] $SPHR final thoughts
Today's episode is sponsored by: Alphasense
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