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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.

Post-Bankruptcy Stocks / Software & Services

Kodak Emerges from Bankruptcy; Great Brand Recognition, but….

September 8, 2013
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Eastman Kodak recently emerged from its 19-month Chapter 11 proceedings, but the former photography icon is a mere shadow of its former self. The reorganized company will focus on the commercial printing business. Annual revenues are expected to be about $2.7 billion, down from $14 billion a few years ago.

Clearly, Kodak is still a highly recognizable brand, although most of its recognition came through photography which it is no longer a significant part of its business plan. While we like to see good brand recognition in a distressed investment situation, that by itself is not enough to make the company a good investment.

Kodak needs to prove itself all over again after coming out of bankruptcy. Prior to the Chapter 11 filing, management did not appear to have a good understanding of the company’s business prospects, and it remains to be seen if they will do any better going forward. We recommend waiting at least several quarters to see how management executes its new business plan before considering an investment in the reorganized Kodak stock.

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Learn George Putnam's Turnaround Secrets

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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. 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 an our active purchase recommendation, currently as a "Hold," and 1,928% stock profit is as of 8/11/16.

Retail Turnaround Trio

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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.