Both of the ETF’s currently owned by Northlake clients, the S&P 400 Midcap (MDY) and the Russell 2000 Value (IWN), went ex-dividend in the last week. This has a temporary negative impact on your portfolio values that will reverse in January when the payments are received….
Sorry for the lack of posts recently but there has been lots of news on stocks of interest to Northlake clients that has occupied my time. Here’s a brief recap:
Northlake’s Market Capitalization and Style models are unchanged once again in December, leaving in place the signals favoring Mid Cap and Value. Consequently, current client investments in the S&P 400 Mid Cap ETF (MDY) and the Russell 2000 Value ETF (IWN) will remain in place. Any cash reserves invested in ETFs in the coming month will also be placed in these two investments…..
Recently purchased positions in Central European Media Enterprises (CETV) were sold on Friday at a small loss due to uncertainty over the political situation in Ukraine. The concern is solely short-term as CETV’s long-term opportunity as the leading TV broadcaster in rapidly growing Central and Eastern Europe is an extremely worthwhile investment thesis….
On November 15, all shares of Lucent Technologies purcahsed for Northlake clients on October 19, 2004 were sold at $4.05. The shares were purchased as a trading idea at $3.55. The idea behinds the trade was to…..
There were no changes to Northlake’s model signals for November. The Market Capitalization Model continues to favor Mid Caps and the Style Model continues to favor Value. There was some movement toward Small Caps in the Market Capitalization model (but not enough to switch the signal), leaving it on the cusp of a shift from Mid Cap to Small Cap. For now, client accounts remain invested in the S&P 400 Mid Cap Index….
Northlake’s latest purchase on behalf of clients, SBS Broadcasting, reported third quarter EPS yesterday. The results were basically in line with estimates and the company reiterated its 2004 guidance….
Yesterday, Northlake purchased SBS Broadcasting (SBTV) for clients. SBTV is a U.S. company with an American CEO, although the company receives 100% of its revenue in Europe where it is one of the leading television and radio broadcasters. In 2004, revenue is estimated at
Northlake is buing Lucent Technologies shares for clients. Our investment thesis closely on LU closely tracks our view of Motorola: Both companies botched things badly and lost market share and competitive position. Both also have changed management and shown several quarters of improved results that have been greeted with skepticism. In general, I look for stocks that are off Wall Street’s radar screen. However, if I see a situation where my bullish viewpoint is at odds with conventional wisdom I will buy widely followed large cap stocks. MOT and LU fit this profile….
MOT reported earnings on Tuesday 10/19 after the close. Although I thought the quarter was fine and the fourth quarter outlook solid, the shares took a beating in Wednesday’s trading. The Street still is giving MOT no respect despite what is now three straight good quarters. I’ll be buying MOT shares for clients over the next few days.
Here is some more of my impressions on the quarter and the stock as reproduced from a post I contributed to StreetInsight.com….