Disney Announces New Media Network Strategy

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 […]

Nexstar Media Group Increases Free Cash Flow Guidance

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 […]

An Unexpected Positive Surprise for Apple

We have grown accustomed to lower volatility from Apple’s earnings and its stock price post-reporting.  Well, what do you know?  Apple (AAPL) reported better than expected 3Q17 results and the shares are responding favorably in initial trading, up about 5%.  Guidance for the September quarter, a key focus point for investors, was better than expected […]

Style Model Moves to Neutral on Growth vs. Value

Northlake’s Style model flipped to neutral for August after spending three months on growth.  The Market Cap model remains on large cap for the third consecutive month.  To align client portfolios invested in the models with the neutral signal, one half of positions in the Russell 1000 Growth (IWF) were sold and the proceeds were […]

Continuous Improvement Underway at MGM Resorts

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 […]

Strong Growth and Expense Discipline Continue at Facebook

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 […]

Comcast Continues to Overcome Cord Cutting Fears

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 […]

Investing for Long Term Growth at Alphabet

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, […]

Large Cap and Growth Favored Again for July

There are no changes to the signals from Northlake’s Market Cap and Style models for June.  The Market Cap model is recommending large cap for the second consecutive month and the Style model is again recommending growth.  With no changes, client positions following the models will continue to be invested in the S&P 500 (SPY) […]

Moving from Mid Cap to Large Cap for June

Northlake’s Market Cap model flipped from mid cap to large cap for June.  As a result, client positions following the model previously invested in the S&P 400 Mid Cap have been sold and proceeds reinvested in the S&P 500 (SPY).  There is no change to the Style model, so current client positions in the Russell […]