Introduction

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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