The Turnaround Letter

View Archived Issues

October 2016

Volume: 31
Edition: 4

Stock Pick & Stock Sales

Back to Top
We advise selling this small-cap now.

Sale Recommendation - October 2016

Although we view the risk of this acquisition falling through as relatively small, its stock is trading so close to the buyout price we recommend selling now to eliminate the risk altogether.
Read More
This stock's valuation is a modest 5.8x current year’s cash operating profits and 13x expected earnings.

Purchase Recommendation - October 2016

This retailer isn’t standing still against industry headwinds. Qualified turnaround management has been recruited, and the company is slowing its new store openings to refocus on basic execution. New merchandising efforts look promising--and the stock has a solid balance sheet, generous dividend yield, insider buying by the controlling chairman and the new CEO and profitable operations that produce healthy cash flows.
Read More

Turnaround Investing Articles

Back to Top
Just as low-priced stocks don’t necessarily have downside limits, high-priced stocks--even expensive ones--don’t always have lids that prevent them from going up further. 

High-Priced Stocks Can Be Cheap

Like all stocks that move up quickly, low-priced stocks can come down quickly in a bear market. That is one of the reasons we prefer stocks with better valuations. Which stocks with high share prices look attractive today? We looked through a roster of dozens of stocks with prices above $100 and highlight these seven.
Read More
Trying to bet on the Fed’s action is a loser’s game.

Volatility Up, Rates to Follow?

While everyone expects the stock market to drop in response to a rate hike, in the past the opposite has often happened. Interest rate rises are usually in response to strength in the economy, which is generally good for stocks. The effect on bonds is much more clear-cut: when rates go up bond prices go down.
Read More
Despite the obvious industry challenges, these five oil service stocks carry very strong balance sheets--along with cash flow.

Oil Service Stocks: Ready for a Lift?

To make it to the eventual upturn, companies that provide drilling rigs, equipment and related services have had to slash expenses, lay off thousands of employees, shrink their capacity and do whatever else is necessary to stay afloat. Ultimately, these challenges will prove beneficial for the industry as it weeds out low-quality operators and marginal capacity, and being leaner, the survivors will be much more profitable when the upturn eventually comes. There are signs that the next upturn is not very far away...
Read More

Learn George Putnam's Turnaround Secrets

stock picks

Turnaround Investing Blog

Turnaround Investing Blog

Turnaround Investors Must Be Wary of Debt

There is an old saying among turnaround investors: “earnings and assets come and go, but debt is forever.” 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 in our active portfolio (currently as a Hold), and 2,017% gain is as of 10/20/16.

Retail Turnaround Trio

value stock

x 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.