IBM (IBM): IBM reported mostly solid 2Q22 results, but the stock fell victim to its strong performance from earlier this year. Ahead of the report, the shares were nearly unchanged against a 20-30% decline for major stock market averages. This strong performance raised expectations for IBM, and a good report with a few small flaws […]
We added Walmart (WMT) to Northlake’s individual stock portfolio across the client base. As always, there could be a few exceptions due to account-level constraints. We like WMT on a fundamental basis, but before we explain that part of the thesis, we wanted to mention two other reasons we made the purchase. First, WMT is […]
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 […]
Facebook (FB): FB shares soared off recent lows after the company reported 1Q22 results and issued updated guidance. The stock had fallen about 50% since last summer and was trading at pre-pandemic levels heading into the report. This is a good example of how expectations play a huge role in short-term stock price action. FB’s […]
Due to Steve’s travel schedule, we are going to try something new this quarter with our quarterly blog updates on individual stocks held widely in Northlake accounts. Rather than publish a separate commentary on each stock, we are going to produce two or three updates with each containing comments on several stocks. This will result […]
As a triple net lease real estate investment trust that owns casino real estate properties, VICI Properties (VICI) operates a highly predictable, low volatility business. VICI is a landlord that is paid rent by casino operators like Caesars Entertainment and MGM Resorts. 4Q21 was no exception to VICI’s consistent financial performance with all reported key […]
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 […]
We are calling an audible on our 2021 purchase of AT&T (T). We have sold the shares and reinvested the proceeds into T Mobile USA (TMUS). We still see value in T shares. However, we see more upside in TMUS. Furthermore, we see the TMUS story playing out over a multiyear period vs. AT&T being […]
Nexstar Media Group (NXST) has been of the best stocks in Northlake’s portfolio, up over 3 times from initial purchases in 2017. The company’s latest earnings report for 4Q21 showed exactly why. The company exceeded consensus earnings estimates for revenue, EBITDA, and free cash flow. Management also rolled forward free cash flow guidance to a […]
Since we last published on Activision Blizzard (ATVI), the company agreed to be purchased by Microsoft for $95 per share in cash. The deal is expected to receive heavy scrutiny by regulators and Microsoft has suggested a deal close in mid-2023. The $95 buyout price is above our target of $90, which we had lowered […]
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