Activision Blizzard (ATVI): ATVI and Microsoft (MSFT) continue to await a regulatory ruling on the proposed acquisition of ATVI for $95 per share. The companies expect to close the deal in 2023, and Northlake continues to expect approval despite the large discount to the deal price at which ATVI trades. Recently, the discount has narrowed […]
VICI Properties (VICI): VICI reported its typically boring quarter with results in line to slightly better than street expectations. Boring is exactly what we like about VICI. As a landlord to the nation’s two leading gaming companies, Caesars and MGM, VICI’s business model is highly predictable. The company collects rents with built-in escalators. Beyond the […]
Home Depot (HD) reported better than expected 4Q21 results driven continued upside in sales. However, investors chose to focus on conservative guidance and modest pressure on gross margins, accelerating the recent pullback in the shares. HD management has been very cautious about forward-looking commentary since the pandemic began despite consistently seeing sales growth well above […]
Home Depot (HD) reported excellent 3Q21 results with sales continuing to grow ahead of consensus expectations and surprisingly good gross and operating margins despite supply chain driven cost pressures. Northlake’s investment thesis on HD has been built around three ideas. First, we believe that the pandemic has created a secular increase in willingness of consumers […]
Home Depot (HD) reported solid 2Q21 results with same store sales growing in-line with expectations and earnings ahead of consensus estimates. HD chose not to provide guidance given uncertainty related to the ongoing pandemic. Management had a positive tone on the outlook for 2H21 and the long-term housing environment. HD noted that August has started […]
When Home Depot (HD) last reported earnings we noted that the company was performing extremely well, but investors were worried about the company’s ability to grow sales this year compared to the heavy spending on home upgrades during the peak of stay-at-home orders in 2020. 4Q20 also saw some pressure on margins from elevated expenses […]
We are moving from neutral on growth vs. value to all-in on value effective today. We are sticking with mid cap. As a result, for clients using Northlake’s thematic models, we have sold all client positions in the Russell 1000 Growth (IWF) and reinvested the proceeds into the Russell 1000 Value (IWD). There will be […]
Home Depot reported better than expected EPS, sales, and comp store sales, but had a small margin shortfall. The stock has reacted poorly to the results, but we remain bullish on the outlook. HD shares are unchanged since last summer even as quarterly earnings have consistently grown at 20%. This has led to a material […]
Home Depot (HD) shares are unchanged since August including a pullback of about 5% since reporting 3Q21 earnings in November. Not much has really changed over this time frame. The stock is just consolidating the huge move off the March COVID-driven low. With the shares up from Northlake’s initial purchase at $190 to almost $300 […]
Home Depot (HD) shares are unchanged since August including a pullback of about 5% since reporting 3Q21 earnings in November. Not much has really changed over this time frame. The stock is just consolidating the huge move off the March COVID-driven low. With the shares up from Northlake’s initial purchase at $190 to almost $300 […]
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