From Virgin Media and England to Liberty Global and Germany

All Northlake client positions in Virgin Media (VMED) have been swapped into Liberty Global (LBTYK). Both companies are leaders in supplying cable TV, telephony, and internet. VMED operates solely in England, while LBTYK operates throughout Northern and Central Europe with a major focus on Germany. I think both stocks have similar upside of 20-30%. However, […]

Media Stock Earnings on the Mark

During the seocnd half of February, most major media stocks reported December quarter results and gave a look ahead to early 2012 business trends. In general, the results and outlook were good. This was definitely the case at CBS, Discovery Communications, Charter Communications, and Liberty Media, each of which is held in most Northlake client […]

Small Caps and Growth Still in Vogue

There are no changes to Northlake’s models for March. The Market Cap model is recommending small caps for the second consecutive month. The Style model continues to favor growth, as it has since August 2011. With no changes this month, Northlake client assets invested in the models will continue to own the Russell 2000 (IWM)) […]

Virgin Media Back on Track

Virgin Media (VMED) had a tougher than expected 2011 as the crisis in Europe included the UK economy. In addition, competition picked up as all of the company’s cable, satellite, and telecom competitors responded aggressively to the macro weakness. This environment led VMED to increase capital spending amid discounting form some competitors while its own […]

Small Cap Back in Favor

For the first time in 13 months, Northlake’s Market Cap model has a new signal. Beginning February, 2012, the model favors small cap. As a result, Northlake client holdings dedicated to the model have sold the S&P 400 Mid Cap (MDY) and proceeds were reinvested into the Russell 2000 (IWM). There were no changes to […]

Another Blowout from Apple Supports Mobile Broadband Theme

Apple continues to amaze. Relative to expectations this is one of the best quarters I ever remember by any company. Damn, I am pretty certain I wrote that about Apple previously! In calendar 2011, Apple earned $35 a share. Guidance for the March quarter is up 32% and is probably conservative. The company could earn […]

Strong Quarter for EMC Justifies Growth Story

EMC Corporation (EMC) reported better than expected 4Q11 results. Revenues of $5.57 billion and EPS of 49 cents exceeded consensus estimates of $5.49 billion and 46 cents, respectively. The company provided detailed 2012 guidance in line with street estimates. Revenues are forecast at $22 billion, up 10%, with EPS forecast at $1.70, up 13%. Given […]

Google in the Penalty Box. For Now.

Two minute minor, five minute major, ten minute misconduct, or game misconduct? I’m thinking ten minute misconduct. The quarter is not nearly as bad as the stock would suggest. Revenues were light but operating income, EBITDA, and free cash flow were in line with expectations. Operating margins, a big issue over the past year, were […]

2012 Starts at Mid Cap and Growth

Northlake’s Market Cap and Style models begin 2012 as they ended 2011, favoring Mid Cap and Growth. Both themes struggled in December but underlying factors in the models remain in place. As a result of the latest signals, Northlake clients invested in the models will continue to own the S&P 400 Mid Cap (MDY) and […]

A Holiday Gift for Charter Communications. And Northlake Clients.

Just before Christmas Santa delivered gold for shareholders of Charter Communications (CHTR). Santa made a first stop at Cablevision (CVC) headquarters, leavng coal, when it was announced that Tom Rutledge was abruptly leaving his role as #1 operating executive at CVC. Rutledge is the most highly regarded executive in the cable industry, a role that […]