CBS: Strong Fundamentals Overshadowed by Embattled Management

CBS is performing well compared to other TV centric media companies.  Smart management decisions have the company building a successful presence in in OTT video with Showtime and CBS All Access.  A strong lineup of sports and marquee entertainment event programming like the Grammy’s is keeping advertising to low single digit declines even as prime […]

Activision Blizzard Reports Strong 2Q18 Results and Typically Conservative Guidance

Activision Blizzard (ATVI) beat estimates for 2Q18 sales and earnings, but provided mixed guidance commentary for the back half of the year. Guidance for the third quarter was well below expectations, partially due to increased marketing expenses ahead of a busy and highly competitive holiday season launch slate. Full year guidance was increased but remains […]

Shift to Mid Cap and Growth for August

Both of Northlake’s thematic models sent new signals for August.  The Market Cap model shifted from large cap to mid cap, while the Style model moved from neutral back to growth.  As a result of the new signals, client positions in the S&P 500 (SPY) and Russell 1000 Value (IWD) were sold and proceeds reinvested […]

Apple Issues Guidance Above Expectations

Apple (AAPL) reported solid 3Q18 results and issued slightly better than expected guidance for the September quarter.  The stock should be in good shape heading into this fall’s new iPhone launch.  Northlake intends to hold AAPL shares in client accounts but some small sales could occur due to position size management.   A move up to […]

Sherwin Williams Reports Improved Outlook for 2018

Sherwin Williams (SHW) reported strong 2Q18 results and increased guidance for the year, reversing the reduced guidance from last quarter. Initial EPS guidance for 2018 of $19.05 was previously reduced to $18.65 reflecting new investments in an expanded partnership with Lowe’s, but SHW now expects to earn $19.20 reflecting a strong start to paint season. […]

Facebook Outlines Decelerating Growth Outlook

Facebook (FB) shares are down 18% this morning following slightly weaker than expected 2Q18 earnings and more significantly a dramatic and totally unexpected slashing of its revenue growth and profitability outlook over the next several years.  Northlake sees FB shares trading in a range of $160-$200 looking ahead to the rest of the year with […]

Comcast Strength Driven by Broadband

If I told you Comcast had more almost 3% more subscribers today than a year ago, I bet you would think I was crazy.  Well, that is the truth.  Yes, the company is losing video subscribers to cord cutting in favor of Netflix, Hulu or skinny streaming cable-like channel bundles.  But broadband is still growing […]

Alphabet: Strong Growth Continues as Expenses Moderate

Alphabet (GOOG/GOOGL) reported good second quarter earnings and the stock is reacting well, up 4.6% to start the day.  GOOG earnings are often hard to understand given the company’s complex corporate structure and strategy.  For 2Q18, the results were relatively straightforward if you ignore the cost of the latest fine paid to the European Union.  […]

Still Prefer Large Caps and Neutral on Growth vs. Value

There are no changes to the recommendations from Northlake’s thematic models for July.  The Market Cap model is recommending large cap for the fourth consecutive month and the Style model has a neutral reading for the second consecutive month.  With no changes, Northlake client assets following the Market Cap model will remain invested in the […]

Moving to Neutral on Growth vs Value

Northlake’s Style model flipped from Growth to Neutral for June.  The Market Cap model continues to register an extremely strong large cap signal.  As a result of the new Style signal, one half of client holdings in the Russell 1000 Growth (IWF) have been sold and proceeds reinvested into the Russell 1000 Value (IWD).  Client […]