I purchased CBS for most Northlake clients on July 7th. The stock has pulled back by 33% off its recovery high leaving it at a point where I think the risk-reward tradeoff is favorable. I can easily construct a scenario where the stock moves from $6 to $9 assuming that advertising trends begin to improve […]
Yesterday morning on Twitter I noted that Steve Jobs was quoted in Apple’s press release announcing 1 million sales of the new iPhone 3Gs. I quickly completed a scan of Apple press releases going back to late March and found no other instance of Jobs being quoted. This morning, AppleInsider.com reported the same and stated […]
SNL Kagan, which publishes the Dow of Steve blog, recently had an article discussing lower prices initiated by apple in the Mac and iPhone product lines. The article fairly noted that the price cuts were in response to the weak consumer environment and tough competition while also noting that Apple still maintains its premium pricing […]
I took a new position in Liberty Media Entertainment Group (LMDIA) today. LMDIA is being acquired by DirecTV (DTV). LMDIA owns 54% of DTV along with several billion dollars in other assets composed primarily of the Starz movie channels, three regional sports networks, and cash. When the deal closes near year end, each LMDIA will […]
I have been strongly in favor of a separation of AOL from Time Warner (TWX) for several years. I am not convinced there is much hidden value in AOL but getting rid of a management distraction and significant negative talking point for investors should be helpful to TWX’s stock valuation. In addition, AOL is has […]
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 […]
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