Northlake’s Style model shifted from Value to Neutral. For clients with allocations to the model, we are selling one half of the holding in the Russell 1000 Value (IWD) and reinvesting the proceeds into the Russell 1000 Growth (IWF). There is no change to the recommendation of Mid Cap from the Market Cap model. Client […]
With another set of quarterly earnings being reported, clients probably notice a lot of large stock moves in reaction to the news. Often the stock moves seem unrelated to the earnings news. Why did Apple and Facebook trade down after easily beating Wall Street estimates? Why did Alphabet trade up and Comcast trade up when […]
Comcast (CMCSA) remains a unique investment, winning on all sides of the pandemic-impacted economy. Broadband continues to have a tailwind as the value and necessity of a high-speed internet connection has been enhanced, likely permanently in our view. NBC Universal is a cyclical business and just at the start of its recovery in theme parks, […]
Facebook (FB) shares are trading down about 4% following the company’s 2Q21 earnings report. The report was good across the board. Financial measures including EPS, revenue, operating income, and profit margins all exceeded Wall Street estimates. Engagement metrics matched estimates even as reopening economies likely distracted user attention. Management guidance for the balance of 2021 […]
Once again Apple (AAPL) reported an outstanding quarter, easily beating consensus estimates that were modestly above the guidance provided three months ago. When we last wrote about Apple, we noted how consistent the company’s financial performance was and how we could almost just repost the prior quarter’s blog. Well, how about this: “In 2Q21 3Q21, […]
Alphabet (GOOG/GOOGL) reported a second consecutive quarter of blowout earnings, smashing consensus estimates on all line items. Most impressive to us was 38% operating margin, about 700 basis points ahead of expectations. It was only a year or two ago that investors were very concerned about GOOG/L profitability as the company invested aggressively across each […]
We added AT&T (T) to Northlake’s portfolio of individual stocks. Not all clients use individual stocks as part of their strategy, and a few that do may not have purchased T due to unique client constraints. In most cases, the purchase was financed by cash reserves in client accounts. T is a low-risk, moderate-reward way […]
IBM reported another quarter of encouraging results against our investment thesis highlighted by a return to revenue growth at the best level in three years. Growth came from the right places driven by Red Hat and consulting services related to cloud initiatives. Revenue growth of 3% pales in comparison to the cloud leaders including Amazon, […]
Despite a tough June and second quarter for our Mid Cap and Value recommendations, we are sticking with these themes. Client positions in the S&P Mid Cap 400 (MDY) and Russell 1000 Value (IWD) that are linked to our Market Cap and Style models will be maintained. For clients not invested in our models but […]
The are no changes to Northlake’s favored themes after the June update. For the third consecutive month, we recommend mid cap and value. Client positions following the models will maintain positions in the S&P 400 Mid Cap (MDY) and the Russell 1000 Value (IWD). Clients using thematic strategies but not invested via the models will […]
