Exchange Traded Funds (ETFs) are central to the execution of Northlake’s unique investment strategy. ETFs represent the bulk of client portfolios and are the vehicles used to apply the signals from Northlake’s Market Cap and Style models.
I recently received a primer on ETFs from one of the main creators and distributors. Here is a link to a pdf file of the article. You will need Adobe Acrobat to open this file.
I have added a link on the navigation bar on the right hand side of each page of the website to enable permanent access to the article. The link is titled “ETF Primer.”
https://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2005-05-31 14:31:372005-05-31 14:31:37Primer on Exchange Traded Funds
I was surprised by the market’s strong response to the news story that Apple Computer (AAPL) was considering using Intel (INTC) chips in future Macs. I think part of the upside was short-covering as the stock was gapping up above its highs since the collapse after the last quarterly earnings report. The gap up also brought the shares back above their 50-day moving average for the first time since April 13, the day after the earnings report…
https://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2005-05-27 10:53:422005-05-27 10:53:42Apple: Investor Focus May Be Shifting To Macs
Motorola (MOT) shares have finally gotten moving after an initial lull following the company’s excellent first-quarter earnings report and increased guidance. A combination of factors have led to the move in the stock including the announcment of a larger than expected share buyback. In my review of MOT’s first quarter earnings, I mentioned a share buyback was a possible catalyst. With the announcement and continuing good mometum in handset sales, MOT shares still have another 10% plus upside despite the recent move up….
Central European Media Enterprises (CETV) shares have rallied sharply since the company announced it would be holding a follow-up a conference call to expand and better explain the 2005 guidance it gave on its 1Q05 conference call. CETV shares fell sharply after 1Q earnings and guidance were issued. The 1Q numbers were a bit light and the company gave 2005 guidance in broad terms that could have led one to believe that they were trying to mask troubling trends in 1Q05. The drubbing in the shares was compounded by the fact the company sold 5.4 million shares in secondary offering at $44.91 in late April. The shares suffered as new investors headed for the exits when the company disappointed investors. As summarized below, the follow-up call was very comforting and closley followed my feelings as outlined in my original discussion of the reaction to the first quarter…..
With all the market craziness and earnings reports, I failed to provide a follow-up regarding the first quarter earnings report for NTL (NTLI). As I expected, it was a sloppy quarter.
However, as I hoped, management confirmed its subscriber guidance which suggests the worst is past. In fact, subscriber growth in the first quarter was the one unarguable bright spot with high-speed data beating expectations, and telephony and analog and digital TV meeting expectations. Analog TV still showed a subscriber loss and digital TV gains were minimal, but the trends were in the right direction after several bad quarters.
I think NTLI turned the corner this quarter. I expect an announcement of a merger with the UK’s other major cable company, Telewest, by the end of June. This merger has very positive financial implications for NTLI. Wall Street fears NTLI will overpay but I think there is plenty of booty to share. Should the deal fall through, NTLI likely will dramatically accelerate its share buyback. I think the shares are washed out and will hold a little longer pending the outcome of the Telewest merger talks. NTLI shares deserve to be trading in the $70s, up 15-20%. If they get there, the NTL Warrants should reobund sharply….
While the world focused on the astounding box office numbers for the latest Star Wars film, Lions Gate Entertainment (LGF) had another successful weekend at the box office with Crash. Crash has now grossed over $27 million and has shown the best legs of any film this year, falling just 20% in each of its first two weekends. It now looks like total domestic box office for the film could reach close to $40 million, ahead of the $25 million-$30 million I mentioned in my initial bullish post on LGF….
https://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2005-05-23 15:04:432005-05-23 15:04:43Crash A Winner For Lions Gate
SBS Broadcasting(SBTV) reported excellent first quarter earnings on Monday. Driven by better than expected organic revenue growth in the company’s television operations, EBITDA exceeded estimates coming in at 8.1 million euros. Management affirmed prior guidance for 138 million euros EBITDA for 2005. On the call analysts asked many questions that tried to get management to admit guidance was low. Management did not bite despite noting that the strength in TV is continuing, as they believe it is still too early in the year to raise guidance given limited visibility. I continue to think guidance is low and stick by the 145 million euro figure in my spreadsheet. I added to holdings in SBTV on Monday for new clients or to build positions for those who already owned SBTV…..
https://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2005-05-23 14:59:122005-05-23 14:59:12SBS Broadcasting Starts 2005 In Fine Form
Disney (DIS) reported strong quarterly earnings earlier this month and the follow-up conference call confirmed operating trends remain excellent across the entire company. The shares sold off a bit when the earnings were reported but have since rallied to their highest level since late April as analysts had favorable commentary and raised earnings estimates for 2005 and 2006. Fundamentals are very strong at DIS and if the company just hits its numbers over the next few quarters, the stock has upside into the low $30s…..
CETV announced last night that they will hold a follow-up conference call tomorrow morning to clarify 2005 guidance provided on the first quarter results conference call held on May 10. The guidance caused confusion, particularly among new shareholders who bought shares on the secondary offering, and led to a sharp drop in the shares. I think tomorrow’s call will provide specifics in line with my own analysis which I wrote back on May 11th but have yet to post. I also think the call is a smart move and will stabilize the shares and lead to a rebound. Today’s gains are a good sign. Here are my thoughts from May 11th….
https://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2005-05-17 11:43:542005-05-17 11:43:54Central European Media Enterprises To Clarify 2005 Guidance
Lions Gate Entertainment (LGF) is the largest independent motion picture studio. The company also produces television shows and owns a library of over 6,200 films and 1,800 television episodes. LGF produces inexpensive movies by Hollywood standards with all-in costs in the neighborhood of just $20 million. The company has had success with horror films and “indie” dramas and comedies (think Miramax, not 20th Century Fox or Walt Disney Studios).
Lions Gate shares trade at a valuation in line with other diversified media companies but should enjoy a faster growth rate. The company’s financial performance is poised to accelerate due to recent success at the box office and the completion of the integration of its 2004 acquisition of Artisan Entertainment. Investors have historically paid a premium multiple for niche oriented media companies that enjoy high and stable returns. If the anticipated financial momentum materializes, LGF should enjoy an expansion in its operating cash flow multiple that leads to a 20% or greater gain in the share price over the next year. Valuation is also supported by “scarcity value” as following the acquisition of MGM by Sony, LGF is only sizable studio unaffiliated with the major entertainment conglomerates….
