If you're looking for a way to make the stock market relatable to your children,
keep an eye on MSG Inc. If your kids are at all interested in sports, this might awaken their investing interests.
MSG (MSG), short for the Madison Square Garden Co., had been a pretty dull stock story until recently. The sports, entertainment and media conglomerate, among other things, owns professional basketball's New York Knicks, who haven't won a championship since the early 1970s.
But this season the Knicks have a story to sell — Jeremy Lin, a previously little-known Harvard University graduate who joined the Knicks in December and entered the starting line-up in early February.
Since then, Lin has become the hottest story in sports with his on-court play and off-court charm. And the Knicks have reaped the benefits at the ticket office and in the standings.
Last fall, MSG's stock chart resembled a mudslide. But since Lin became a starter, shares have been steadily climbing. Shares recently were up about 15 percent this year to above $32 on the Nasdaq stock exchange, with about half that gain coming since Lin got on a roll. The stock has also become a favorite of at least three analysts who recently issued bullish profit forecasts.
How could you turn this into a lesson for young investors? By tracking the "Lin effect" on MSG stock.
Encourage your kids to follow the box scores as well as the financial tables over the next month or so. See how Lin performs on the court, then check the stock price the following day. Do Lin's stat line and the team's performance match the market movement? Keep it that simple.
Of course, so many other factors contribute to a stock's daily mood swings, so at some point you could explain how investors make money in the stock market, how shares are bought and sold, the advantages of buying low and selling high, and why it's important to also be able to read the financial box scores.
Then take it to another level. What other publicly traded companies are benefiting from the Lin Effect? Walt Disney Co. (DIS) comes to mind. It owns the ABC network, which televises NBA games, as well as ESPN.
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