For the first time since the summer of 2009, Northlake’s Style model is recommending Growth over Value. In last month’s commentary, I mentioned this shift was possible as there had been a steady drift in the underlying model factors toward growth. The signal for November changed to growth but is just over the borderline. It […]
Virgin Media reported solid third quarter results as management continues to execute very well at the operating level and take advantage of VMED’s superior broadband network in the United Kingdom. Overall growth in revenue and EBITDA remains modest, rising mid to upper single digits. Free cash flow is growing double digits as capital spending intensity […]
Apple reported another strong quarter but the stock sold off due to concerns about guidance for the December quarter and disappointment in iPad sales. The guidance issue relates solely to gross margins, which Apple guided to 36%, well below recent quarters that have averaged about 40%. The company attributed the guidance to mix issues. iPhones […]
I was expecting good 3Q10 earnings from Google but I thought it would be built on better cost controls. 2Q10 results that led to a big slide in the shares saw higher investment spending overwhelm a small top line beat. Ahead of the 3Q numbers, I expected another quarter of revenue strength but figured management […]
Northlake’s Market Cap model shifted back to small cap for October. As a result of the change, all client positions in the S&P 400 Mid Cap (MDY) were sold and replaced by the Russell 2000 (IWM). There were no changes to the Style model, which remains on the long running Value signal. The shift to […]
The stock market continued to move steadily higher over the past week as investors seem to no longer be worried about an imminent double dip recession. The drop from the yearly highs in the spring was largely about steadily deteriorating economic data. The data did not suggest the recovery had been aborted and growth was […]
Yesterday all client positions in Discovery Communications (DISCK) were cut back by about 40%. Discovery has been an extremely successful investment with original purchases of the DISCA voting shares made near $16 in the fall of 2008 when the company first started trading as a separate asset-backed stock following a spin-off from Liberty Media. The […]
There were no changes to Northlake’s Market Cap and Style models for September. The Market Cap model is recommending Mid Cap for the third straight month and the Style model is signaling Value as it has since July 2009. With no changes this month, Northlake client assets dedicated to the Core and Explore strategy will […]
Trading volumes on Wall Street are seasonally low in late August until Labor Day passes. But that has not led to a lack of movement. Stock prices are under severe pressure having given up most of the gain off the July yearly lows. The major concern continues to be the economic outlook. Data remains weaker […]
There were no changes to Northlake’s Market and Style models for August. The market Cap model continues to recommend Mid Caps and the Style models still favors Value. As a result, Northlake client positions in the S&P 400 Mid Cap (MDY) and the Russell 1000 Value (IWD) will be maintained for another month. The Market […]
