Mixed Report from La Quinta Does Not Change Bullish Story

La Quinta (LQ) reported solid operating results for the second quarter despite some headwinds and investor worries.  Revenue and EBITDA matched Wall Street estimates despite three unexpected issues.  First, the massive rainfall and flooding in Texas impacted occupancy in the state, which contains 25% of LQ’s hotels.  One LQ hotel in San Marcos was flooded […]

Comcast Story Intact Despite a Mixed Quarter

Comcast reported mostly in line results for its 2Q15. Nothing changes in the long-term story, which we continue to like very much.  Comcast offers steady and predictable, if modest growth, a great balance sheet, double digit growth in free cash flow, and shareholder friendly management that acts with an element caution.  Comcast is composed of […]

Still Bullish as Apple Enters Transitional Period

Apple (AAPL) reported slightly disappointing earnings relative to very high expectations.  iPhone shipments of 47.5 million fell a little short of 50 million plus expectations and while the company did not breakout Watch sales,  it is easy to infer a range of 2-3 million, short of the 3-4 million  consensus.  Guidance for the September quarter […]

Google Finally Delivers and Breaks Out

Google (GOOG/GOOGL) reported slightly better than expected 2Q15 earnings.  Revenue growth picked up slightly after a long string of decelerating growth quarters.  This proved reassuring to investors concerned about Google’s long-term growth rate amid a shift to mobile where app usage theoretically hurts traditional search which Google dominates.  Equally important for the stock, expense growth […]

Large Cap Holds for July and Growth Still Looks Strong

There are no changes to the signals from Northlake’s Market Cap and Style models for July.  The Market Cap model is recommending large cap for the second consecutive month and the Style model favors large cap growth, as it has since November 2014.  Given the latest model readings, Northlake client positions following the models will […]

Swapping to Large Cap and Sticking with Growth

After six months favoring Mid Cap, Northlake’s Market Cap model shifted to a Large Cap recommendation for June.  As a result, Northlake client positions held in the S&P 400 Mid Cap (MDY) were sold and the proceeds were reinvested in the S&P 500 (SPY).  The Style model continues to recommend Growth over Value, as it […]

Activision Benefits from Robust Product Pipeline, Shift to Digital

ATVI announced results that came in above street expectations on the top and bottom line, and raised full year guidance for both as well. The stock reacted positively and broke out of its recent trading range to the upside. ATVI continues to make progress transitioning their business model to focus on high-margin digital sales driving […]

Fairly Quiet at Liberty Media and Liberty Broadband

It was quarter at Liberty Media (LMCA/LMCK) and Liberty Broadband (LBRDA/LBRDK).  This was no surprise at Media as the slimmed down company is mostly now just a holding company for its 58% stake in Sirius XM Satellite Radio (SIRI).  SIRI had already reported a strong first quarter, including raising full year guidance on a number […]

La Quinta Driving Towards Capital Returns

La Quinta Holdings (LQ) reported strong results for 1Q15, beating street expectations on revenue and adjusted EBITDA. LQ raised the low end of their adjusted EBITDA guidance, reflecting management’s confidence that results for the rest of the year will continue to be strong. Shares of LQ responded positively and reached a new 52-week high the […]

Business as Usual is Good Business at Comcast

It is back to business as usual at Comcast (CMCSK) and investors have no reason to not like that.  The now scuttled acquisition of Time Warner Cable is definitely a lost opportunity but Comcast retains many strengths.  We always viewed the acquisition as a “nice to have” as opposed to a “need to have.”  Comcast’s […]