CBS reported worse than expected 1Q09 results with EPS, revenue, and EBITDA each below estimates. However, Les Moonves spoke about improved advertising trends in the last few weeks and said “indications are we’ve seen the bottom of this downturn.” These comments echo those from Disney (DIS) and News Corporation (NWSA) when they reported earlier this […]
I sold all client and personal positions in Time Warner (TWX) on Thursday morning. The shares had rallied 39% since re-opening for trading following the completion of the spin-off from Time Warner Cable (TWC) on March 27th. Most of the TWX owned by Northlake was purchased in August 2008. Adjusted for the split from TWC, […]
Cablevision (CVC) shares jumped sharply following the release of 1Q09 earnings. The upside is being driven by free cash flow and the announcement that CVC will consider spinning off its Madison Square Garden assets. I found the fundamental operating trends at the cable business to be slightly disappointing with revenue and EBITDA at the very […]
News Corporation reported dismal 3Q09 earnings as expected. Revenues were light of expectations but EPS were in line after adjusting for several large, one-time items. In the reported numbers, the story is the collapse in profitability at Television (operating income -99%), newspapers (-97%), Sky Italia (-35%) and book publishing (from profit to loss). There is […]
While I still think Apple (AAPL) has upside to $150 plus as the year unfolds, I trimmed positions across most Northlake client accounts this morning. Apple shares have performed very well this year as the company is seeing much better demand than many feared given the state of consumer spending around the world. As a […]
First Time Warner Cable (TWC) and then Comcast (CMCSA) set the table for Cable vision (CVC) with stronger than expected earnings reports. The first two reports revealed financial and subscriber metrics that were better than expected pretty much across the board. In earlier quarters as cable metrics decelerated, CVC was generally able to buck the […]
News Corporation will report a dismal March quarter. EPS and EBITDA will declines 50% or more. The good news is this should be the worst quarter this cycle. That is certainly what investors seem to be saying as NWSA shares have rallied 84% off their March lows including 20% since media earnings season kicked off […]
Discovery Communications (DISCA/DISCK) reported its third consecutive positive earnings surprise. The shares are responding, up 8% in early trading on Monday. DISCA shares are now at their highest price since early September 2008 and up 21% since the day before the market crash began. In 1Q09, DISCA produced an across the board positive surprise with […]
There are no changes to Northlake’s Market Cap and Style models for May. The signals continue to recommend small caps and growth. As a result, I will maintain positions in the Russell 2000 (IWM) and the Russell 1000 Growth (IWF). There was no movement in the underlying factors of the Market Cap model. Eight of […]
Ahead of its 1Q09 earnings report on Monday, Discovery Communications announced a joint venture and re-branding of its Discovery Kids Network. A 50/50 joint venture with Hasbro will lead a re-naming and re-programming of the U.S. network. Kids will continue to operate as is in international markets According to SNL Kagan, Kids currently reaches 63.4 […]
