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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.

2015 Bankruptcy Recap: 46% Increase Fueled by Oil & Gas/Mining Industry--Further Uptick Predicted

Looking back at 2015, research reveals a 14% decline in overall business bankruptcies but a 46% uptick in public company Chapter 11 filings—with a striking 51% of those filings coming from the battered Oil & Gas/Mining sectors. Economic indicators point to further increases in corporate bankruptcy, in general, and Energy-related filings, in particular. Just a few days into 2016, this viewpoint has already been validated by Arch Coal's long-awaited $8 billion Chapter 11 filing—and continuing oil price plummets severe enough that OPEC will likely convene an emergency meeting to address "shattered" economies.
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Yearend Bounce Candidates: When the Calendar Makes Losers Into Winners

Excerpted from the December 2015 Issue
Most of the time we recommend taking a long-term view and focusing on underlying business fundamentals when choosing stocks to buy as part of a solid turnaround investing strategy. However, around this time of year it is worth considering a shorter-term strategy based more on the quirks of the calendar--and the tax law--than on business fundamentals.
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Are the "Experts" Usually Wrong? Time to Buy Emerging Markets?

Excerpted from the October 2015 Issue
If you look longer-term--both backwards and forwards--emerging markets look like much more promising investments...and many of the stocks have decent dividend yields to compensate you in case you have to wait a while for a rebound.
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Companies Looking for Trouble: Contrarian Investing Opportunity

Excerpted from the October 2015 Issue
There is growing evidence that Chapter 11 bankruptcies and restructurings are on the rise. The principal drivers for this are the huge amount of debt that has been raised over the last decade, and the sharp decline in commodity prices. An increase in bankruptcies isn’t necessarily a bad thing.
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Consider Taking Tax Losses Now--Beat the Year-End Bounce Rush

Excerpted from the October 2015 Issue
With all the volatility in the stock market this year, many investors probably find themselves holding some stocks in which they have sizable losses. By selling those losers, you can use the losses to offset taxable gains that you may have realized during the year.
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The China Syndrome: Stock Market Volatility & Turnaround Investing Strategy, Part II

Excerpted from the September 2015 Issue
We believe that it is very important not to let the market volatility spook you into bailing out of stocks or taking other similar drastic action. While it may be painful to ride out a sharp downturn, that is the best strategy. The market will recover from any of these downdrafts, usually quite quickly.
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Coal Stocks (and Bonds): A Cautionary Tale for Value Investors

Excerpted from the August 2015 Issue
One approach would be to invest in some of these beaten-up bonds rather than the stocks. For stock buyers, we suggest sticking to the "safest" names in the coal sector--and "safe coal stocks" may remain an oxymoron for some time to come, particularly in light of ANR's Chapter 11 bankruptcy.
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George Putnam's Favorite Stocks for 2016

stock picks

Distressed Investing Blog

Distressed Investing Blog

2015 Bankruptcy Recap: 46% Increase Fueled by Oil & Gas/Mining Industry--Further Uptick Predicted

Looking back at 2015, research reveals a 14% decline in overall business bankruptcies but a 46% uptick in public company Chapter 11 filings—with a striking 51% of those filings coming from the battered Oil & Gas/Mining sectors. Economic indicators point to further increases in corporate bankruptcy, in general, and Energy-related filings, in particular. Just a few days into 2016, this viewpoint has already been validated by Arch Coal's long-awaited $8 billion Chapter 11 filing—and continuing oil price plummets severe enough that OPEC will likely convene an emergency meeting to address "shattered" economies. Read More.

Your Financial Security is Serious Business...

so why should you trust The Turnaround Letter?

  • The Turnaround Letter's 15-year returns were 11.0%--vs. S&P's 2.9%
  • 30 Years of Turnaround Investing Experience & Reliable Stock Market Advice
  • 2015's Closed Out Purchase Recommendations Averaged 53% Stock Profit
  • Diverse Monthly Stock Picks Personally Selected by George Putnam

Spotlight: Junk Bond Market

stock market advice

MarketWatch's Mark Hulbert recently tapped George's distressed investing expertise to determine the fate of the junk-bond market and what its nearly three-year decline likely means for your portfolio.

 

Hulbert writes, "What’s really going on? For insight, I turned to George Putnam, an expert in distressed-company investing. His Turnaround Letter advisory service has handily beaten the stock market over the past 15 years, according to the Hulbert Financial Digest’s tracking, by an impressive margin of 7.3 percentage points a year on an annualized basis."

 

Commenting on the rapid growth of high-yield exchange traded funds (ETF's), Putnam notes, "They have become the investment vehicle of choice for short-term investors….Those investors tend to be trend followers and, therefore, are just the opposite of being contrarian."

 

Read the full MarketWatch junk-bond article to find out what George thinks these recent indicators likely mean for future distressed investing profit.