The Turnaround Letter

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February 2016

Volume: 30
Edition: 8

Stock Pick & Stock Sales

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This hospitality mid-cap is a great value stock opportunity.

Purchase Recommendation - February 2016

This stock pick generates solid cash flow and is using this cash generation to reduce leverage and compensate shareholders. The company has raised its dividend each of the last two years so that the stock now yields a generous 5.3%--plus, it announced a special dividend and stock buyback in late December. We also like that the stock has some large, heavy-hitting shareholders.
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Turnaround Investing Articles

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We remain very cautious about high yield bonds.

High Yield Bonds: Cloudy Outlook for 2016

Last year at this time we urged caution in approaching high yield bonds. That caution proved well-founded as the asset class had a poor year.
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Most bank stocks are paying attractive dividends.

Everyone Hates the Banks

Despite bargain-basement valuations and relatively solid balance sheets, investors have continued to sell these already out-of-favor stocks. These concerns seem overdone, and we think bank stocks will start to recover in the not-too-distant future.
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How should stock market volatility affect your investment strategy?

What's With the Stock Market?

This January has been a tough month for most investors. Where does the market go from here? Of course, we don’t know for sure; but we do think the gloom and doom is overdone.
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Turnaround News & Updates

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This stock is now like a fairly long-term option on commodity prices.

News Notes & Updates - February 2016

These bonds now trade for 40-some cents on the dollar, and they provide a way to play the situation with a little less risk but still decent (though less dramatic) return potential compared to the stock.
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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.