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.
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.
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.
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:
* 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
This Forbesarticle 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."