Activision Headwinds Strengthen

Last quarter we noted that ATVI has been managing the headwinds coming from the employee discrimination lawsuits well.  Looking solely at the results of 3Q21, one would conclude the same thing.  However, the other shoe dropped when the company delayed the release of two important games from 2022/2023 to 2023/2024.  The issues are a loss […]

Nexstar Still Shining

The title of this blog post is similar to when we last discussed Nexstar Media Group (NXST).  This is no coincidence as the company’s 3Q21 earnings report was more of the same good news.  NXST has built nationwide scale of local TV stations, a business than has always generated large free cash flow (TV stations […]

Models Stable Ahead of Fed Taper Decision

We are sticking with our current positioning for at least another month after reviewing the latest updates from our Market Cap and Style models. We will continue to hold current positions following the models including the S&P 500 (SPY), Russell 1000 Growth (IWF) and Russell 1000 Value (IWD).  We will also stick with our preferences […]

Will Apple’s Lost Sales Stay Fresh or Turn Rotten?

When Apple (AAPL) reported its June quarter results, management hinted at supply chain issues beginning to impact the company’s ability to meet demand.  During the quarter, at a conference presentation, the company updated its guidance to note that about $3 billion in sales would be lost in the September quarter.  When the company reported September […]

Comcast Questions Starting Sooner

Comcast (CMCSA) reported another good set of quarterly financial results.  Revenues, EBITDA, and free cash flow all at least met Wall Street estimates in 3Q even as the company had preannounced a slowdown in growth of new broadband subscribers.  From a financial perspective, the huge increase in broadband subs during the peak of the pandemic […]

The Wait is Ending at Sony

Sony (SONY) reported a second consecutive beat and raise quarter. Even after the previous quarterly report, we still thought that guidance was conservative, so we are pleased but not surprised with another step forward confirming our investment thesis.  We could almost republish our last quarterly update and just add today’s date.  Three months ago, we […]

Alphabet Shines Amid Digital Ad Industry Challenges

Alphabet (GOOG/GOOGL) reported better than expected earnings with revenues, expenses, and EPS all coming in ahead of expectations.  The revenue upside was especially impressive given the turmoil in internet and mobile advertising caused by Apple’s privacy initiatives.  Google did not escape completely unscathed as YouTube ad growth was a few percent less than expected (although […]

Facebook Reset Delays Reward

Facebook (FB) has had a rough go lately.  News stories have occurred almost daily criticizing the company.  Politicians and regulators are looking for a way to punish the company and limit its influence.  Apple’s changes to enable greater privacy for iOS users is limiting FB’s ability to measure and target its users on behalf of […]

AT&T Fundamentals Continue to Improve

AT&T (T) reported its first quarterly results since Northlake took a long position in client accounts in July.  Virtually across the board, the results slightly exceeded estimates leading the company to modestly increase its 2021 guidance for financial results and subscriber counts.  Our thesis is built upon a hated company that is showing improved execution […]

Setback for IBM Ahead of Positive Catalyst

After two consecutive quarters of improved results and a positive analyst meeting earlier this month, IBM’s 3Q21 earnings were disappointing.  Revenues fell slightly short of estimates, and after adjusting for a favorable tax rate, EPS did as well.  Key growth areas like consulting and hybrid cloud performed well, but software, mainframe systems, and soon-to-be spun […]