Turnaround Investing Blog

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

Energy / Retailing

What Makes An Ideal Turnaround Investment? | Putnam's Top Stock Picks

MoneyLife Radio's Chuck Jaffe recently interviewed George to learn more about what he looks for in an ideal turnaround investing opportunity: a solid core business, strong brand recognition and a healthy balance sheet. He also favors those companies that bring in skilled turnaround leadership, noting, "We like to see a change in management because very often the management that gets the company into trouble won't be able to get it out of trouble."

Putnam also talks specific business sector trends—namely in the troubled retail and energy arenas. Pointing out the many encouraging characteristics of Macy's (M), George notes that although the retail icon has been struggling recently, it continues to enjoy a great brand and has valuable real estate holdings. Not only that, but its stock is trading at a decent yield, and Putnam believes Macy's will "survive and eventually thrive." On the other end of the spectrum is Sears (SHLD), which George notes has not reinvested and is "just dying quickly."

The interview also covers the battered energy sector, which The Turnaround Letter currently favors. Putnam recommends Weatherford International (WFT). This mid-cap oil services provider is reducing debt and lowering costs—and its debt maturities are minimal through 2018. George names three additional energy sector-related value investing opportunities.

George also talks about Credit Suisse (CS), his most recent Turnaround Letter purchase recommendation. This large-cap investment management company found itself poorly-managed and overextended, but shows many of the characteristics Putnam seeks in an ideal turnaround investment. Although based in Switzerland, the company benefits from a worldwide platform and great brand. CS has a solid franchise and is, according to Putnam, "doing all the right things"—including a revamped management team and C.E.O.

Even with a tried-and-true investing strategy, not all turnaround stock picks can be winners; and George tells Jaffe how he knows when it's time to sell and move on. Jaffe wraps up this MoneyLife Radio interview with a spirited round of "Hold 'Em or Fold 'Em" stock pick recommendations. George Putnam's full interview can be heard here.

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The Turnaround Letter In The News: Equities.com & Forbes

With more than 30 years of turnaround investing and market-beating results, it's no surprise that media and market pundits often seek George Putnam's commentary, stock picks and unique contrarian expertise. Most recently, both Forbes and Equities.com praised The Turnaround Letter. 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:

Value Investing Stock Profit

* Bristow remains in our active portfolio (currently as a Hold), and 1,390% gain is as of 7/19/17.

Here's Why You Should Invest in Asset Managers

 

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This Forbes article cites a recent MoneyShow write-up that recommends investors take advantage of the strong stock market and potential interest rate hike by "putting some of your investment assets into the shares of asset management stocks."

 

The article praises The Turnaround Letter's OAK purchase recommendation and quotes George Putnam: "As the corporate debt binge that we’ve experienced since 2009 comes to an end, Oaktree will benefit from a growing number of restructurings and bankruptcies."  

 

Learn more about Putnam's investing success with turnaround stocks.