Large Cap / Capital Goods / Household & Personal Products / Materials

Purchase Recommendation - February 2012

With roots going back more than 160 years, this glass and ceramics producer’s stock has taken a recent beating—despite encouraging corporate reporting. The Turnaround Letter thinks its strong finances, R&D commitment and recent dividend increases make it a very appealing prospect for a patient turnaround investor.
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Europe’s Not Out of the Woods Yet, But…

The latest banking crisis in Europe, this time in the tiny island nation of Cyprus, shows that the continent has not yet truly solved its financial problems. It has only applied a series of band-aids that have temporarily averted disaster, but have not yet provided a firmer long-term footing for the Euro-bloc. There could be another crisis of confidence at almost any time, with Italy and Spain being the most likely instigators. Read More.

What did The Turnaround Letter see that others did not?

Questions & Tips

AskGeorge

Why are you still recommending MGIC?

I don’t normally comment on individual stocks in this particular blog, but the MGIC situation represents a basic investment principle that is worthy of discussion here.

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How important are Price-to-Earnings (P/E) ratios in evaluating turnaround stocks?

Price-to-Earnings ratios are probably the most widely used tool for comparing the relative values of different stocks.

Read More.

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