The Turnaround Letter

May 2017

Volume: 31
Edition: 11

Stock Pick & Stock Sales

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After a period of finger-pointing, this large-cap is now focusing on improving its business. 

Purchase Recommendation - May 2017

This iconic automotive manufacturer has replaced key leadership, cooperated with investigators and continues to settle claims. New management has developed a reasonable plan to increase profit margins and reduce the company’s capital intensity while maintaining a steady new product cadence, and potential improvements in its governance could further boost shareholder value. The company's brands appear largely undamaged and business is growing. We believe this stock pick appears to be on the road to recovery.
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Turnaround Investing Articles

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When companies utilize the Chapter 11 process properly, they can emerge as lean and strong competitors. 

Post-Chapter 11 Oil & Gas Stocks: Good Assets Freed From Shackles of Debt

Since the start of 2016, over a dozen energy companies have emerged from bankruptcy as public companies. Knowledgeable distressed investors have not been able to soak up this large supply of new post-bankruptcy stocks, leading to their stock prices being even softer than usual. We think many of these post-reorganization oil and gas stocks look like good bargains right now. This article highlights several post-Chapter 11 stocks that look particularly attractive, together with a few that narrowly escaped bankruptcy and now offer interesting turnaround potential.
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Investors can’t get enough of S&P500 stocks.

Stocks Left Behind By The Surge in S&P500 Index Funds

Large-cap stocks not in the S&P500 Index do not directly participate in the upward cycle and may get left behind, creating good long-term bargains. Similarly, when the cycle reverses and investors bail out of index ETFs, stocks not in the index could decline less. With these thoughts in mind, we searched for “left-behinds”--large-cap stocks that are not members of the S&P500 Index that look attractively valued. Some look like stand-alone bargains, others look attractive relative to their peers that are in the S&P500 Index.
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Turnaround News & Updates

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Learn George Putnam's Turnaround Secrets

Free Report: Learn Value Investing Secrets Free

Turnaround Investing Blog

Turnaround Investing Blog

Distressed Investing: How to Handle Emotion & Realize Outsized Gains

As the range of potential outcomes for a distressed security is wide, the path to the endgame is uncertain and the timing can be protracted, it is easy to let your emotions drive your strategy. Once you’ve made the decision to invest, the waiting--doing nothing--is the most difficult part. 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 2,320% gain is as of 4/11/17.

Five Struggling Stocks That Will Turn Around

 

stock market advicex

 

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.