Photo: MSG Network
After graduating from Harvard with a 3.1 GPA, New York Knicks point guard Jeremy Lin seemed more likely to join the World Bank than the NBA.
As Hamza Ahsan of Bleacher Report points out, Lin “did not receive a phone call from an NBA team on draft night, where he was at least projected by a few scouts to be drafted late in the second round.”
Following a stint on the Dallas Mavericks Summer League team, Lin bounced around and was cut twice before being picked up by the Knicks. Now, basketball fans and non-fans alike, from New York to Taipei, have been overcome with what the media has dubbed “Lin-sanity.”
Floridly Lin-sane ourselves – and eager to pay homage to the economics degree Lin graduated with in 2010 – we have put together the Jeremy Lin-dex, a basket of stocks crafted to track the ongoing success of Jeremy Lin. We’ve equally-weighted every stock in the index so that no one stock has precedent over another.
Without further adieu, here are the stocks, and why we chose them:
The Madison Square Garden Company (MSG)
Since Jeremy Lin’s Knicks debut, the team has “drawn 70 per cent higher ratings than the previous 20 games, averaging a 3.08 household rating versus the previous 20 games’ 1.81 household rating.” Consequently, MSG shares have risen 9.2% over the past five days.
With Time Warner (TWX) cable customers unable to watch the Knicks due to an MSG blackout over retransmission fees, many fans are switching to FiOS, which recently began carrying MSG in hi-def.
Those not caught up in the MSG-TWX Battle of the Billionaires can catch the NBA on ESPN and ABC, both units of Disney.
Currently in the second year of a three-year contract with Nike, Lin’s agent, Roger Montgomery, told Sports Illustrated that “a renegotiation of terms could be in order if Lin keeps playing like this.”
Ethan Allen (ETH)
According to the New York Post, Lin will soon be moving from his brother’s sofa on the Lower East Side of Manhattan to “the 20th floor of posh Trump Tower in downtown White Plains,” where he is subletting former teammate David Lee’s old apartment.
Since TRMP was delisted from the NASDAQ in ’09, the stock can’t be included in the Lin-dex. But perhaps venerable furniture manufacturer Ethan Allen might get a bump from die-hard fans seeking to emulate the most recognisable (former) sofa-dweller in the world?
Dick’s Sporting Goods (DKS)
Because where else are you gonna buy your Air Lins?
Berkshire Hathaway (BRK-A)
Warren Buffett’s flagship owns Russell Brands, which owns Spalding, which makes the official NBA basketball JLin uses to drain threes night after night.
Trading on the pink sheets in the US, Adidas makes the replica No. 17 Lin jerseys sold on NBA.com. ESPN.com’s Kristi Dosh reports that the jersey has been the league’s “top seller since Feb. 4, and the Knicks were the top-selling team last week, with five of the top 10 items sold by the league being Knicks jerseys.”
As you can see in the chart below, our Lin-dex is outperforming the S&P 500 — a market-cap weighted basket of large cap stocks — by 2.5% since Lin’s first game in February. But will the Lin-dex continue to ouperform? And, more importantly, will Jeremy Lin?Click to enlarge