Builders FirstSource’s (NASD: BLDR) shares rose sharply on the 13th following news of its making an all cash, $1.63 billion, acquisition of ProBuild Holdings, a deal that will create a more than $6 billion revenue company.
Layne Christensen (NASD: LAYN) announced financial results for the fiscal 2015 fourth quarter (“Q4 FY 2015”) and year ended January 31, 2015 (“FY 2015”), including a discussion of results of operations by segment.
FairPoint Communications (NASD: FRP) reinforced the importance of its investment in technology in the New England area by launching data center services for wholesale customers looking for improved access to their customers in the region.
Kemet (NYSE: KEM) has purchased IntelliData, Inc., a Greenwood Village, Colorado-based developer of digital solutions supporting discovery, decision support, and the sales and marketing of electronic components.
While investing in any energy-related company in the current environment involves risks, this small cap appears to have a sufficiently strong balance sheet to at least survive and likely prosper. It had the foresight (or good luck) to raise new debt last April before oil prices plummeted. Moreover, at the end of December, this stock pick held cash roughly equal to its long-term debt--and it has no significant debt maturities before 2019.
Many of the radio companies are doing a good job of cutting costs and creating synergies by delivering the same programming in multiple markets. Because radio stations require little in the way of capital expenditures they can generate healthy cash flow. With their small market capitalizations, many of the value stocks discussed in this article could be acquired for what is almost petty cash to some of the huge media companies.
While we normally focus on individual stocks, from time to time we like to look at mutual funds that focus on turnarounds. Mutual funds can be attractive for many investors because a single fund can provide fairly broad diversification across a large number of stocks. There will be years that large, mainstream stocks will perform badly, and that's when contrarian funds like these can really shine.
Turnaround Stock Strategies
George Putnam has always followed the same straight-forward and highly-profitable investment philosophy. He published his first Turnaround Letter issue back in 1986, and readers have seen extraordinary long-term stock profit ever since.
In fact, 12 of 2014's 13 closed-out purchase recommendations saw gains--with five of those enjoying total returns greater than 100%. The Turnaround Letter's average return for 2014's stock picks is +82%: