Another fairly quiet quarter is in the books at Liberty Media which controls tracking stocks in Formula One (FWONA/K) and Liberty Sirius (LSXMA/K). LSXM controls nearly 70% of SIRI and SIRI had already reported strong second quarter results so there was very little discussion on that front. FWON was the primary subject although there were […]
Activision Blizzard (ATVI) reported strong second quarter results with sales and profits substantially higher than expected. While guidance for the third quarter and full year were raised from previous levels, it appears investors expected a larger increase. ATVI has typically provided conservative guidance in the past, and this appears to be the case again this […]
Disney (DIS) reported a mixed quarter that was completely overshadowed by its announcement of a new strategy for its media networks. The shares are trading lower, which in Northlake’s opinion is logical. Making major investments into digital, over the top distribution of its sports rights and Disney and Pixar content is going to be expensive […]
Our timing on adding Sinclair Broadcast Group (SBGI) to Northlake’s portfolio proved poor. Over the past few weeks, we sold SBGI at a loss and reinvested in Nexstar Media Group (NXST). Like SBGI, NXST owns local TV stations around the country, generally in small to mid-size markets. The bull case is also similar: extraordinarily high […]
MGM Resorts (MGM) reported strong 2Q17 results with better than expected profitability. Management executed well against long term plans to continuously improve profit margins, overcoming a self-imposed headwind from lower hotel room revenue and a slightly unlucky quarter at the casino tables. The investment thesis remains on track with several catalysts expected to drive shares […]
Facebook (FB) reported better than expected sales with profits significantly ahead of expectations. The strong results reflect expense discipline even as FB continues to invest for future growth. Looking ahead to the rest of this year, FB narrowed full year expense growth guidance from 40-50% to 40-45%. EPS easily beat Wall Street estimates even after […]
Despite lots of discussion of cord cutting and cord shaving and merger rumors, Comcast continues to produce good financial and operating results. Furthermore, management is careful with the balance sheet by keeping debt levels low and appears to be cautious about the need for a big acquisition. We like the steady growth and low risk […]
Alphabet (GOOG/GOOGL) shares seem likely to take a breather following the company’s 2Q17 earnings report. Overall, we would give the report a solid “B” but with the shares having soared 26% this year before the report an “A” was probably required to sustain the momentum. The report showed remarkable growth in Google’s mobile search, YouTube, […]
Liberty Global (LBTYK) remains a troubled stock after reporting mixed 1Q17 results and lowering full year guidance for growth in operating cash flow. The shares performed poorly last year but bounced back strongly to start this year. Unfortunately, the sharp down move post the 1Q17 earnings report last week lost all of the year to […]
Formula One (FWONA/K) and Liberty Sirius (LSXMA/K) are tracking stocks of Liberty Media. FWON owns the Formula One racing circuit and LSXM owns a controlling interest in SiriusXM Satellite Radio (SIRI) representing approximately 70% of the shares outstanding. Consequently, when Liberty reports earnings and hosts a conference call the discussion is on these separate businesses. […]
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