Another Month for Mid Cap and Value

There are no changes to the recommendations of Northlake’s models for June. The Market Cap model continues to recommend mid cap and the Style model still favors value. As a result of the latest signals, Northlake client investments in the S&P 400 Mid Cap (MDY) and the Russell 1000 Value (IWD) will be held for […]

A Bubble in Stock Splits

Several companies held in Northlake client portfolio recently announced stock splits. Discovery Communications (DISCK) and Liberty Media (LMCA) announced stock splits that will become effective over the summer. Apple (AAPL) also announced a split effective in early June. These announcements follow Google issuing new non-voting shares as a 2 for 1 split. As a reminder, […]

CBS Healthy Despite Share Turbulence

CBS Corporation (CBS) reported slightly better than expected March quarter results. It was not enough to turn the recently negative sentiment in the shares, however. The day after the report CBS closed down a little over 2% after falling nearing 5%. Year-to-date CBS is down 11% despite good earnings, positive news on capital allocation, and […]

Quiet Quarter at Liberty Media

Liberty Media (LMCA) had a quiet March quarter earnings report. Earnings do not really matter to LMCA as the stock trades relative to its asset value. As a reminder about 2/3rds of the asset value is a 51% stake in Sirius XM (SIRI). Another 25% is a 26% stake in Charter Communications (CHTR). The other […]

Liberty Global Growth Acceleration Beginning

Liberty Global (LBTYK) reported improved March quarter earnings after several expected but slower growth quarters. What LBTYK calls rebased revenue grew 2.3% just slightly below estimates of 3%. The upside surprise came in operating cash flow which saw rebased growth of 6%, well ahead of consensus for 4%. An investment cycle, cost related to several […]

Discovery Communications Ride Gets Even Bumpier

Discovery Communications (DISCK) reported a slightly disappointing March quarter results. Most of the miss was not at the domestic or international cable networks. However, investors are treating the stock harshly even after poor year-to-date performance. In hindsight, I should have sold DISCK when the company went on its European acquisition spree as it was out […]

Content Engine Driving Disney to Great Heights

Disney (DIS) reported a big beat to March quarter earnings expectations with EPS of $1.11 vs. consensus of 96 cents. Revenues also were ahead of expectations at $11.65 billion vs. estimates of $11.23 billion. The primary driver of the upside was the film studio but strength was pretty much across the board with exception of […]

Value and Mid Caps Still in Favor

There were no changes in Northlake’s Market Cap or Style models for May. The Market Cap model continues to recommend mid cap and the Style model still favors value. With no changes for May, client positions in the S&P 400 Mid Cap (MDY) and the Russell 1000 Value (IWD) will be held for at least […]

Remaining A Little Nervously Long Qualcomm

I have been a nervous long on Qualcomm (QCOM) for the last six months. Earnings growth has slowed and competitive pressures might mean that will continue over the next few years. The stock continued to hold up well and even had rallied this year to all-time years, however. Unfortunately, the shares are giving back about […]

Finally A Good Quarter for Apple

Apple reported its best quarter with revenues, earnings, profit margins, and iPhone sales all easily exceeding Wall Street estimates. In addition, the company materially increased its share buyback program, raised the dividend by 8%, and announced a 7 for 1 stock split effective in June. Finally, guidance was within an acceptable range with revenues a […]