Alphabet (GOOG/GOOGL) reported good second quarter earnings and the stock is reacting well, up 4.6% to start the day. GOOG earnings are often hard to understand given the company’s complex corporate structure and strategy. For 2Q18, the results were relatively straightforward if you ignore the cost of the latest fine paid to the European Union. […]
There are no changes to the recommendations from Northlake’s thematic models for July. The Market Cap model is recommending large cap for the fourth consecutive month and the Style model has a neutral reading for the second consecutive month. With no changes, Northlake client assets following the Market Cap model will remain invested in the […]
Northlake’s Style model flipped from Growth to Neutral for June. The Market Cap model continues to register an extremely strong large cap signal. As a result of the new Style signal, one half of client holdings in the Russell 1000 Growth (IWF) have been sold and proceeds reinvested into the Russell 1000 Value (IWD). Client […]
Nexstar Media Group reported inline but mixed results for 1Q18. Importantly, the company reiterated its 2018 guidance for $13.10 in average annual free cash flow per share in 2018 and 2019. The political cycle leads investors in local TV broadcasters to look at valuation on a two year basis. Normally, Northlake tries to avoid a […]
Liberty Global (LBTYK) remains a very frustrating investment for Northlake. 1Q18 results were typical. The company claimed growth in line with estimates with earnings and EBITDA up nearly 5%. However, the results were boosted by a one-time catch up payment in Germany. Excluding the payments, growth was around 3.5%. This type of messaging has occurred […]
Disney (DIS) shares remain at a very challenging juncture at the company’s spends heavily on its primary strategic priority, shifting its media networks business to a direct to consumer model. A key part of this strategy is the acquisition of most of 21st Century Fox’s entertainment assets. In DIS’s latest earnings report, the company indicated […]
CBS has been the most frustrating stock in the Northlake portfolio. The company has consistently met or exceeded earnings estimates, steadily increased its dividend and share buyback, pruned its portfolio wisely to reduce advertising exposure and cyclicality, and is the clear leader among broadcast and TV network companies with its OTT strategy. However, none of […]
There is no super cycle at Apple but business fundamentals at Apple still look solid. Apple reported earnings in line with Wall Street estimates but ahead of fears. Guidance for the next quarter was ahead of recently lowered investor expectations. The key takeaways from Apple’s quarter are: iPhone units volumes are not collapsing, growing 3% […]
There are no changes to the recommendations from Northlake’s Market Cap and Style models for May. The Market Cap model is signaling large cap for the second consecutive month, while the Style model remains on a growth signal for the third straight month. As a result of the latest signals, Northlake client accounts following the […]
MGM Resorts (MGM) reported pretty good 1Q18 earnings but lowered its outlook for the rest of the year based primarily on company specific factors. The business environment in Las Vegas and Macau remains favorable and should stay that way short of a global growth slowdown or recession. MGM’s problems are partially due to poor communication […]
