Mid Cap

$1 Billion to $10 Billion

ARTICLES

We think this technology mid-cap has a bright future.

Purchase Recommendation - February 2017

This value stock opportunity became newly independent following a recent spin-off from its iconic parent company. We like the spin-off. It provides two very appealing fundamental improvements: new leadership and more focus. We also like that Carl Icahn controls three of the eight board seats and owns a sizeable stake, which should keep pressure on the new management team to improve execution and results. EBITDA is reasonably healthy and debt will be manageable.
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Mattel’s 4Q16 Earnings Miss Estimates But Underlying Brands Look Healthier

Toy maker Mattel’s (Nasdaq: MAT) 4Q16 revenues and earnings missed estimates due to higher than expected holiday promotions and currency costs. The fundamental health of its brands look stronger and operating costs declined meaningfully. The end-game of turnaround may be pushed back but is still on track. Mattel earlier announced that Margaret Georgiadis, formerly President, Americas at Google, will be the new CEO.
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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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Learn George Putnam's Turnaround Secrets

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Turnaround Investing Blog

Turnaround Investing Blog

Energy's Wild Ride--Energy Sector Bankruptcies E-Report

BankruptcyData's Energy Sector Bankruptcies report anticipates that overall Chapter 11 activity will remain at a high level for the foreseeable future. Energy company filings have probably peaked and will gradually decline over the next 12 to 18 months, so the flow of bankruptcies will likely shift toward a more diverse group of industries. In time, this could contribute to an opportunity-rich market for distressed debt and post-reorganization stocks. 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.

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.