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.
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.
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.
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...
There is an old saying among turnaround investors: “earnings and assets come and go, but debt is forever.”
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
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."