Ahead of AT&T’s third quarter earnings report I decided that I would either sell or hold Northlake’s shares based on what was reported and what I heard on the conference call. Northlake clients have owned AT&T for almost a year and the stock prices is actually down a bit offset by the hefty quarterly dividend. […]
After 13 months flashing a Small Cap signal, Northlake’s Market Cap model shifted to Mid Cap for October. I had anticipated this move after steady weakening of the small cap signal over the past several months. The new mid cap signal is a weak one and could shift back next month but the message is […]
One of my most important reactions to breaking news or rumors is to get my thoughts down on paper. This allows me to organize my ideas, determine questions and get a handle on how the stock market may initially react to the news. I’ve written recently about how mergers and acquisitions have returned to the […]
Merger and acquisition rumors have reemerged as drivers of media stocks after a mutli-year absence. The latest rumor was posted by The Wall Street Journal in a Heard on the Street column speculating about a possible Verizon Communications Inc. takeover of DIRECTV Group Inc. The speculation emanated from Verizon CEO Ivan Seidenberg discussing TV as […]
Media stocks continue to be market leaders in the latest phase of the stock market rally. The market rally is based on improved sentiment and data toward a global economic recovery. Most revenue drivers for media companies are highly sensitive to economic growth so it is not surprising that media stocks are among the sectors […]
There were no changes to Northlake’s Market Cap and Style models for September. The signals remain small cap and value. As a result, all client positions in the Russell 2000 (IWM) and Russell 1000 Value (IWD) controlled by these models will remain in place until at least the first trading day of October. August marks […]
On Monday, I sold half of Northlake’s positions in CBS in each account that holds the stock. My reasoning is that the stock has risen 80% since purchasing it just 7 weeks ago. This spectacular rise caused CBS positions to approach 4% of equity portfolios. That is a high threshold for me, especially in a […]
Most media companies report quarterly earnings in a two week span beginning with the last week of the first month of each calendar quarter. Below is a two-part recap of second quarter earnings season that was originally published on the Dow of Steve Blog at SNL Kagan Interactive. Week One Recap: July 27 – July […]
CBS reported 8 cents on revenue of $3.01 billion against consensus of 7 cents and $3.05 billion. EBITDA of $387 million was at the top of end expectations and includes about $20 million of what could be considered one-time charges. Most importantly to the outlook for the stock, the company maintained 2009 EBITDA guidance. Many […]
Discovery Communications reported another positive surprise, making it three straight quarters. Revenue matched expectations but superb performance on costs allowed EBITDA to come at $381 million vs. analyst estimates ranging from $341 million to $356 million. EPS were in line after adjusting for one-time but would have been higher if not for a high tax […]
