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George Putnam, one of the country's leading turnaround and distressed investing professionals, shares his timely insight on the economy and turnaround investing opportunities.

Risk & Diversification

While important to any investment program, diversification is critical to successful turnaround investing. 
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Volatility Up, Rates to Follow?

Excerpted from the October 2016 Issue
While everyone expects the stock market to drop in response to a rate hike, in the past the opposite has often happened. Interest rate rises are usually in response to strength in the economy, which is generally good for stocks. The effect on bonds is much more clear-cut: when rates go up bond prices go down.
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Mind the GAAP Gap

Excerpted from the September 2016 Issue
A good place to start is in the company’s filings with the SEC--in which Non-GAAP earnings must be reconciled with GAAP results. Earnings conference call transcripts, available for free for most companies, can reveal management’s reasoning. Investors will also want to look at history--how often and how large have adjustments been over the past five years? To be most effective, the investor can use both GAAP and Non-GAAP numbers. Minding the GAAP gap can help improve the chances that your stock profits become recurring.
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Avoid This Common Turnaround Investing Mistake

Turnaround investors recognize the opportunity in a battered stock well before the rest of the market and want to pounce immediately. But even if the fundamentals look attractive and there is a margin of safety in the valuation, the stock can still decline--sometimes substantially.
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Don't Make Too Much of Price History

It can be tempting to look at a depressed stock and think, “it used to trade at 40 and now it’s at 8 – therefore it must be a bargain.” Unfortunately, the fact that a stock once traded at a higher price does not guarantee that it will ever get back there. One big reason that a stock trades so much lower than before: its earnings potential or assets have deteriorated. Without some fundamental improvement, the share price will continue to lag, or worse.
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Focus on Worth not Price, to Create Stock Profit

One common stock market pitfall can be mistaking a low-priced stock for being cheap. Many stocks trade at low prices, say under $5 per share; but this is no indication of real value--or whether it’s a bargain. What really matters is what shares are worth.
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Learn George Putnam's Turnaround Secrets

stock picks

Turnaround Investing Blog

Turnaround Investing Blog

Turnaround Investors Must Be Wary of Debt

There is an old saying among turnaround investors: “earnings and assets come and go, but debt is forever.” Read More.

Market-Beating Profit: The 200+ Club

Turnaround stocks present a unique opportunity for savvy investors to buy in at bargain prices. Take a look at this list of just a few of our purchase recommendations that have realized a return rate of 200% or better:

* Bristow remains in our active portfolio (currently as a Hold), and 2,017% gain is as of 10/20/16.

Retail Turnaround Trio

value stock


MoneyShow.com interviewed George to learn more about his favorite value stock picks for today's market. In "Retail Turnaround Trio," Steve Halpern highlights three of The Turnaround Letter's recently-profiled retailers: JWN, TIF and SPLS.


Putnam notes, "Well the retailing sector is undergoing very fundamental change as people move away from the bricks and mortar mall doors to buying more and more online but that's not going to wipe out all of the old-fashioned retailers. Starting the middle of 2015, investors just moved away from retailers en masse and a number of them are trading at about half the level they were a year ago. We thought some of the higher quality names that definitely will be survivors looked interesting."


Learn more about these three retail stocks poised for a turnaround.