The following commentary summarizes recent media company earnings reports including Discovery Communications (DISCA), which remains widely held by Northlake clients. Since I wrote these comments, it was announced that DISCA will be added to the S&P 500. This provided about a 10% pop in the stock price. The past several weeks have witnessed a series […]
I am pleased to announce that beginning January 1, 2010, I will be co-managing Entermedia Growth Partners. Entermedia is a 16 year old hedge fund focused on media, communications, entertainment, and communications technology. Entermedia will be a separate business from Northlake but is highly complementary. The Entermedia investment portfolio contains long and short investments in […]
Media stocks continue to be market leaders in the latest phase of the stock market rally. The market rally is based on improved sentiment and data toward a global economic recovery. Most revenue drivers for media companies are highly sensitive to economic growth so it is not surprising that media stocks are among the sectors […]
Most media companies report quarterly earnings in a two week span beginning with the last week of the first month of each calendar quarter. Below is a two-part recap of second quarter earnings season that was originally published on the Dow of Steve Blog at SNL Kagan Interactive. Week One Recap: July 27 – July […]
Earnings season for media stocks begins in earnest next week but there is still news flow that is impacting the stocks. Media stocks soared on Monday after leading last week’s rally. Monday’s move was the result of a bullish cover story (subscription required) on the sector in Barron’s. The author, Michael Santoli, essentially reiterated my […]
The following commentary first appeared in the “Dow of Steve” blog on SNL Kagan’s subscription website on July 1, 2009. There were signs in last that the upfront market was finally beginning to move although few if any deals have been struck between broadcast networks and advertisers. Experienced observers can point to only one other […]
The following commentary first appeared in the “Dow of Steve” blog on SNL Kagan’s subscription website on June 17, 2009. The most significant secular debate in the TV industry surrounds over the top video (OTT). Whether or not consumers cut the cord has significant ramifications for cable and satellite companies, broadcast and cable TV network […]
Over the past few trading days, shares of the two major independent Hollywood studios have moved up sharply. Dreamworks Animation (DWA) is up four straight days for a total of 13%. Lionsgate (LGF) is up 16% over two days. Both stocks were unusually strong on Tuesday on well above average volume. Another studio in the […]
I have pointed out repeatedly that media stocks are suffering a two pronged assault from cyclical and secular challenges. Making matters worse is that the cyclical downturn in the economy might be accelerating secular trends. Investors certainly believe this as evidenced by the combination of falling near-term and long-term estimates and a drop in relative […]
It’s been a rough year for investors. My own performance has been mediocre with most Northlake clients plus or minus a couple of percent relative to the S&P 500. I think I could have done better but I use a fully invested strategy so it was a very tough to make much progress. Further complicating […]
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