Model Volatility Continues with Small Cap and Value Now Favored

Northlake’s models continue to send volatile signals. Just a month after the unusual occurrence of both the Market Cap and Style model shifting their signals, it happened again for March. The new signals favor small cap and value. As a result, client positions dedicated to the models were adjusted. The S&P 400 Mid CAP (MDY) […]

Liberty Global Growth Overshadowed by Acquisition of Virgin Media

Liberty Global (LBTYK) reported another excellent quarter with continued rapid growth in cable, broadband, and telephone subscriptions and accelerating growth in financial metrics. This news was expected. What was not expected was the company’s acquisition of Virgin Media (VMED). LBTYK is a very acquisitive company but expectations for the next big merger were focused on […]

2013 Outlooks Bullish for CBS and Discovery Communications

CBS and Discovery Communications (DISCK) each reported mixed 4Q12 results compared to expectations but provided positive guidance for 2013. I think both stocks offer further upside with the caveat being that each company’s results are sensitive to consumer spending trends via their exposure to advertising. With worries about the consumer on the rise due to […]

Selling Charter and Buying Disney

I just completed a swap of all Northlake client positions in Charter Communications (CHTR) into Walt Disney (DIS). CHTR shares have been strong the last few days on takeover rumors. The stock had fallen sharply last week after Time Warner Cable (TWC) announced poor earnings and guidance. GHTR takeover rumors appeared before the Liberty Global […]

Both Models Shift!!! Mid Cap and Growth Now in Favor.

For the first time in many years, both of Northlake’s models changed their recommendations in the same month. For February, the Market model shifted from large cap to mid cap and the Style model shifted from value to growth. As a result of these changes, all client positions in the S&P 500 (SPY) and the […]

QUALCOMM looks good as EMC continues to struggle

Last week two of Northlake’s stock holdings in the technology sector reported earnings. The verdict was mixed with QUALCOMM (QCOM) reporting another outstanding quarter and issuing guidance for 2013 above Wall Street expectations. EMC Corporation (EMC) reported earnings in line with recently lowered Wall Street estimates but issued slightly disappointing guidance. As would be expected, […]

Apple Earnings OK, Guidance Poor, New Controversy

Apple reported largely inline December quarter results. Revenues of $54.5 billion were barely shy of consensus and EPS of $13.81 were barely above consensus. Gross margins exceeded guidance and were close to the most optimistic street estimates. Product sales were about as expected except for Macs, which missed by lot. Guidance was below the street […]

Google Concerns Ease

Google (GOOG) has consistently produced 20-25% growth for the last three years but the stock has gone nowhere. Investors have worried that the growth will slow due to competition from social media (Facebook) and the shift from desktop to mobile search. Over the past week, both of these issues have been addresses with a favorable […]

Large Cap and Value to Start 2013; Models Put in Mixed 2012 Performance

There are no changes to the signals from Northlake’s models for January. For the second consecutive month, the Market Cap model favors large caps. The Style model remains on a Value signal, as it has since August 2012. As a result of this month’s signals, there will be no changes to client investments based on […]

Back to Large Cap

For the month of December, Northlake’s Market Cap model shifted back to large cap. As a result, client positions dedicated to the Market Cap model sold their holdings in the S&P 400 Mid Cap (MDY) and reinvested the proceeds in to the S&P 500 (SPY). The Style model continues to favor value, so client positions […]