The Turnaround Letter

January 2017

Volume: 31
Edition: 7

Stock Pick & Stock Sales

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With a decent 2.3% dividend yield, we think this value stock's shares have a bright future. 

Purchase Recommendation - January 2017

It appears that much-needed stability is returning to this large-cap value stock, and continued strengthening of the economy could add the tailwinds of higher advertising prices and slower cord-cutting. The stock pick's valuation looks reasonable--even before factoring in the likely benefits of the new, more stable turnaround management. 
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Turnaround Investing Articles

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Distressed debt will present turnaround opportunities, but there will also be attractive post-reorganization equities. 

2016 Bankruptcy Review: More & Bigger

While we believe that overall bankruptcy activity will remain at a high level for the foreseeable future, we think that filings in the energy sector may have peaked. We are optimistic that the increasing bankruptcy activity will provide some very attractive opportunities for turnaround investors. 
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Our 2016 Top Five picks generally did well: GSAT, RDS/B and TRNC all posted good gains...

Reluctantly Picking Favorites for 2017

We firmly believe in the merits of holding a larger and more diversified group of turnaround stocks: This helps reduce the risk from an individual bad selection and the temptation to sell a temporarily weak stock at the bottom. Also, we like all the stocks on our Recommended list, otherwise they wouldn’t be there. There’s another reason (although perhaps not a very scientific one): Just as a team featured on the cover of Sports Illustrated is said to become jinxed, we sometimes worry that the same fate might befall some of our Top Five picks too. 
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Risks to the markets may increase in 2017: Investors should always prepare for stock market volatility.

Looking Back at 2016 and Ahead to 2017

The market’s previous assumptions about the U.S. economy--sluggish growth, rising government regulation, near-zero interest rates--seem to have reversed overnight with the election of Donald Trump. We think the changes run deeper. Households and companies are starting to move past the financial crisis, which peaked eight years ago. Demand is picking up.  With it, there is a good chance that the deflationary environment is shifting back toward inflation. Trump’s election could further boost growth through more government spending and fewer regulations. Risks to the markets may increase in 2017, and investors prepared for volatility can better hold firm when it arrives.
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Turnaround News & Updates

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Read on for these three important portfolio updates.

News Notes & Updates - January 2017

Buy limit raised on two value stocks from our current portfolio--and another important update as a result of this recent high-profile spin off.
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Learn George Putnam's Turnaround Secrets

Free Report: Top 10 Turnaround Stocks

Turnaround Investing Blog

Turnaround Investing Blog

The Turnaround Letter Takes a Look at Activist Investors

With nearly $180 billion in assets under management, “activist” investment funds have become a powerful force in the capital markets: Nearly 40% of companies in the S&P 500 attracted activist attention in recent years. According to Activist Insight, 320 companies in the U.S. experienced an activist campaign in just the first half of 2017; but who, exactly, are these activists, what are they after, and what role do they collectively serve? 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 1,390% gain is as of 7/19/17.

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.