Excerpted from the January 2017 Issue
While we believe that overall bankruptcy activity will remain at a high level for the foreseeable future, we think that filings in the energy sector may have peaked. We are optimistic that the increasing bankruptcy activity will provide some very attractive opportunities for turnaround investors.Read More
With U.S. stocks well into their eighth year of a bull market and the economy showing increasing signs of strength, finding ideal turnaround stocks--those with all three ingredients--can be a needle-in-the-haystack project at best. What is an investor to do in a seemingly barren value stock landscape?Read More
Excerpted from the January 2017 Issue
The market’s previous assumptions about the U.S. economy--sluggish growth, rising government regulation, near-zero interest rates--seem to have reversed overnight with the election of Donald Trump. We think the changes run deeper. Households and companies are starting to move past the financial crisis, which peaked eight years ago. Demand is picking up. With it, there is a good chance that the deflationary environment is shifting back toward inflation. Trump’s election could further boost growth through more government spending and fewer regulations. Risks to the markets may increase in 2017, and investors prepared for volatility can better hold firm when it arrives.Read More
Adding a sizable debt burden on top of the profit uncertainty will further expand the range of possible outcomes; and this very wide range creates inefficient pricing, as investors can have very different views on what these bonds are actually worth. For the buyer of distressed bonds, this uncertainty and inefficiency are powerful sources of potentially high returns.Read More
Distressed investing usually involves greater risk than turnaround investing, but can also offer higher returns. Given the risk, most investors in distressed securities focus on bonds, which can provide greater downside protection.Read More
It’s bargain hunting season again. Holiday shoppers flock to the malls and their favorite websites, and savvy investors search the stock market for year-end discounts.Read More
Excerpted from the December 2016 Issue
Investors have newfound enthusiasm for domestic economic growth, as a Trump presidency could bring new infrastructure spending, lighter regulatory burdens and lower corporate taxes. While the distance between campaign promises and corporate profits can be vast, we agree with the market’s general assessment of how government policies might change.Read More
Excerpted from the November 2016 Issue
A common temptation is to mix emotions with investing. Your candidate won, and so you are more optimistic--or your candidate lost, and now you’re more pessimistic. Stocks don’t know who you voted for. Avoiding emotionally-driven post-election buying and selling will be beneficial to your financial health.Read More
As tempting as it may seem, buying the stock of a company operating under bankruptcy court protection is almost never a good investment.Read More
Leadership matters. Whether in sports or in business, an organization is not just a collection of people, cash, physical property, intellectual property and other assets. Not every new management team is highly capable and new leadership cannot always overcome dire strategic situations or the quagmire of a decaying industry; but without good leadership, no business can prosper for long--much less survive.Read More
Learn George Putnam's Turnaround Secrets
Turnaround Investing Blog
A lot has happened since our August 2016 “Time to Move Out of the Comfort Zone” article, which focused on companies that were out of favor due to their “high volatility” earnings and share prices. While the market had ignored the six companies we featured, these “uncomfortable” stocks went on to produce some impressive returns, gaining an average of 35.1% as of March 15, 2017.
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 2,849% gain is as of 1/17/17.
Five Struggling Stocks That Will Turn Around
Kiplinger points out that despite the post-election stock market surge, not all stocks have benefited from the uptick: "More than 100 issues in the S&P 500 have fallen in price this year, including dozens that have slumped by more than 10%....Yet these stocks won’t all stay in the dumps forever. Some will mount a comeback in 2017, making it an opportune time to try to identify the best candidates."
Quoting George Putnam, Kiplinger details five value opportunities for the new year.
Learn more about Putnam's investing success with turnaround stocks.
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