The Wall Street Journal wrote a damning and extremely damaging article about one of Northlake’s long positions. The story on American Apparel (APP) appeared on the front page of the Saturday edition. As someone who had done his homework and read the filings, most of negative news in the article was nothing new to me. […]
I remain long Disney across Northlake client accounts including my own accounts. Down just 3%, the shares have acted fairly well this year compared to many other media investments, particularly those with significant advertising exposure. Performance of the shares in the near future is a battle between the possibility that the economy drags down earnings […]
Time Warner (TWX) shares are down 10.8% so far this year, lagging most other large cap media stocks. News Corp (NWS) is down 6.1%, Disney (DIS) is down just 3.7%, and Viacom (VIA) is down 5.2%. The largest single component of TWX’s valuation is Time Warner Cable (TWC), whose shares are down less than 1%. […]
Controversy about monetization of revenue and profits at MySpace has held back shares of News Corp so far this year despite outstanding December quarter earnings, increased guidance for the fiscal year ending this June, and commentary from Rupert Murdoch and other senior executives stating that so far the company is feeling any impact from the […]
Apple has staged a strong recovery, rising 33% from its 2008 intraday low in late February. The beta effect during the recent rally certainly has helped but continuing good news on Mac sales and speculation over the 3G iPhone have been equally responsible. A long-time friend and institutional salesperson, JK, recently IM”d me noting that […]
With all the writing I do on the movie business, sometimes I fear that I miss the big picture. Weekly box office or holiday DVD sales can be important factors in short-term trading of movie-related stocks but the long-term trends are less volatile and more important for a fundamentally based investor like me. With that […]
Merrill Lynch has put out the latest edition of its quarterly report on pricing trends in travel industries. I summarized this report last quarter because it think it offers insights into both inflation trends and the health of the economy. The inflation link is self-explanatory. On economic health, my theory is that pricing in travel […]
Northlake’s Market Cap model shifted from Mid Cap to Large Cap for April. As a result, I sold all client positions in the S&P 400 ETF (MDY) and swapped into the S&P 500 Spyder (SPY). The underlying indicators in the model were unchanged. This shift occurred because the model is based on two-month smoothing and […]
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