Time for a brief update...
Madison Square Garden Co. (MSG) announced they would explore splitting the company to unlock some value. Shares jumped at the news breaking $70. We exited our position at roughly $75 for almost 50% gain. It is possible that the company does split up and extra value is created, but with the Dolans holding the majority - it is by no means guaranteed. I felt the risk/reward profile had been significantly altered at these levels and without any meaningful payout, felt it best to close out the position.
Vectrus (VEC) has continued to perform well post spinoff, now eclipsing $30 p/sh - up roughly 48% from where we purchased it at the end of September. We continue to hold the stock here and look for further upside over the next year.
Target (TGT) has a solid quarter and spiked on the news. It now sits at roughly $73 at the time of this writing - a 25% gain from our purchase price at the end of June. We continue to hold for now.
Our oil stocks (BP) and (PTAXF) have continued to struggle as oil prices continued their slide. We added slightly to each position and will continue to hold as we feel both are significantly undervalued. Eventually, OPEC and other countries will slow production and prices will rise. It may take a while, but we believe this slide is just a temporary downturn.
