Large Cap Growth and Mid Cap for May

Each of Northlake’s models has a new signal for May.  The Market Cap model is now recommending mid caps after four consecutive months at small cap.  The Style model now favors growth after two months at a neutral reading.  As a result of the new signals, client positions in the Russell 2000 (IWM) have been […]

Steady as She Goes at Google

Google (GOOG/GOOGL) reported another solid quarter with 24% foreign exchange neutral revenue growth.  Revenue growth was driven by advertising, up 20% in constant currency terms.  Mobile is the driver with paid clicks rising 53%.  Mobile ads remain cheaper than desktop, so the shift to mobile leads to lower ad pricing (-19%) but the net growth […]

Back on Track at MGM Resorts

As expected, MGM Resorts (MGM) bounced back with a strong quarter in 1Q17 after reporting disappointing 4Q16 results. As described in our 4Q16 update, the miss was largely driven by the shift in timing of Jewish holidays compounded by management’s miscommunication of the anticipated impact to their convention business. MGM’s management took responsibility for the […]

To Xfinity and Beyond

Comcast reported another good quarter and the shares are moving up to another all-time high.  CMCSA shares are befitting from two factors.  First, the company continues to execute almost perfectly on all financial and operational metrics.  Second, the threat of onerous cable regulation has fallen sharply under the Trump Administration.  Putting the long history of […]

Deregulation to Drive Sinclair Broadcasting

Sinclair Broadcasting (SBGI) has been added to Northlake’s individual stock portfolio.  We expect transformational acquisitions to increase the company’s free cash flow by 25-50% over the next two years.  Free cash flow per share could average $6-7 on a pro forma basis for the 2017/2018 TV station cycle.  We believe this will drive the shares […]

No Changes to Market Cap and Style Models

Despite a lot of underlying movement in the indicators, there are no changes to the recommendations from Northlake’s Market Cap and Style models.  The Market Cap model remains on a small cap signal and the Style model still reads neutral on growth vs. value.  With no changes to the signals, client positons in the Russell […]

Style Model Back to Neutral on Growth vs. Value

Northlake’s Style model shifted to a neutral signal after three months at value.  The change primarily reflects a pause in the Trump reflation trade during February that impacted the trend and technical indicators in the Style model that are designed to help model timeliness.  Given the new signal, half of client positions in the Russell […]

Growth Expectations Reset at MGM Resorts

MGM Resorts (MGM) reported disappointing fourth quarter results. The miss was partially self-inflicted; previous guidance from MGM warned about a difficult year-over-year fourth quarter comparison but neglected to mention the potential impact from a shift in the timing of Jewish holidays. A related timing shift by one large convention group impacted fourth quarter EBITDA by […]

CBS Long-Term Story Very Much Intact

CBS reported mixed results for 4Q16 in a quarter where that was widely expected due to difficult comparisons.  The company showed three fewer Thursday night NFL games and lost 9 hours of primetime to election coverage.  This led to revenues and operating income declining by -2%; ignoring the discontinued radio operations that are being sold.  […]

Liberty Global Growth Acceleration Affirmed

Liberty Global (LBTYK) reported solid 4Q16 results, affirming the acceleration in the company’s growth rate that is critical to our investment thesis.  Using the company’s methodology that ignores foreign exchange fluctuations, M&A, and the new joint venture with Vodafone in the Netherlands, rebased revenues grew 3.3% and operating cash flow grew 7.5%.  Revenues were slightly […]