Yes the Atlanta Braves look awful, and tracking stocks may be a relic of Wall Street’s go-go days. But no, shareholders of Liberty Media’s baseball assets have not seen the value of their holdings halved since stock assigned to them was introduced on Monday.
“Those were just bad trades,” Tom Eagan, senior research analyst at Telsey Advisory Group in New York, said of the transactions establishing the $36 open. “Tracking stocks like this often get mispriced, and the Braves are even harder to price because it’s a private enterprise,” he said. “What matters is the enterprise value doesn’t change even if the market cap changes. When they started trading, the Braves started really high and that was just mispricing. ”
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