Mid Cap

$1 Billion to $10 Billion

ARTICLES

Globalstar Received FCC Approval – Huge Upside Potential Yet Major Hurdles

Satellite communications company Globalstar (Nasdaq: GSAT) received FCC approval for its more limited spectrum request as filed on November 10th. The approval reduces the chances of bankruptcy as Globalstar can now start monetizing its spectrum. However, while strong upside potential exists if small-cell deployment gains acceptance, the path to monetization remains murky in both timing and magnitude. Shares have pulled back following their 95% run-up and peak of $1.84 on the December 23 news. Shares remain a BUY although we consider them to be speculative.
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This REIT carries some execution risk, but we like its very attractive valuation and aggressive new management.

Purchase Recommendation - December 2016

This mid-cap's revenue and earnings appear to be stable, operating results are well above debt covenant limits, cash flows look reasonably healthy and overall liquidity is substantial. The value stock's very high 10% dividend appears well-covered. Valuation at 5.8x next year’s FFO is nearly half that of its peers, leaving strong upside potential. 
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This value stock's newly-appointed CEO has already implemented positive changes.

Purchase Recommendation - November 2016

Despite its roster of highly valuable brands, this mid-cap stock pick has struggled to adapt to today’s Internet-based media and entertainment environment. Several important corporate changes greatly improve its outlook, however--and financials look very solid.
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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.
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SeaWorld Suspends Dividend, Helps Bolster Financial Position

Theme park company SeaWorld Entertainment (NYSE: SEAS) will suspend its dividend after paying a final $.10/share dividend in October. While disappointing as it removes a source of immediate cash return to investors, it helps bolster the company’s financial position on its way to recovery.
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Turnaround Investing Blog

Turnaround Investing Blog

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. 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:

200+ Club: Value Investing Stock Profits with 200% or Better Return

* Bristow remains in our active portfolio (currently as a Hold), and 2,849% gain is as of 1/17/17.

Bet on These Battered Stocks

Battered Stocks/Tribune Logo: Value Investing from The Turnaround Letter Highlighted in the Chicago Tribune

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Chicago Tribune highlighted this Kiplinger's Money Power write-up on George's contrarian investing approach and The Turnaround Letter's April 2016 monthly turnaround stock pick.

 

Darren Fonda notes, "…besieged stocks often start to recuperate as the headlines fade and investors anticipate a return to precrisis sales and profits. The trick, of course, is to find companies that are more likely to rebound from a setback than collapse entirely."

 

Learn more about Putnam's turnaround investing strategy.