A variety of companies with heavy debt loads face significant debt maturities in 2015 and early 2016. If volatility continues in the credit markets, these companies may not be able to refinance the debt when it comes due, and they will be forced to file for Chapter 11 bankruptcy.
This value stock pick is a perfect contrarian’s trifecta: It is a post-bankruptcy stock in a very out-of-favor industry with a stock price well down from its summer public offering—and it's likely to be subject to year-end selling pressure.
Looking to cash in on timely tax loss selling and portfolio window dressing? These 10 year-end bounce stock picks represent the worst performers in the S&P 500 during calendar 2014, adjusted somewhat so that there is good diversification by industry group.
Auto suppliers have not fully recovered from the early-October stock market decline. Many of these value investing stock picks are still recovering from the 2008-2009 downturn, and several are also post bankruptcy stocks.
While a bankruptcy certainly does not have to be the final chapter for NII Holdings, it will take a substantial restructuring of the capital structure for this Company to emerge from Chapter 11 as a viable standalone entity.
If you’re looking for a trendy, get-rich-quick gimmick The Turnaround Letter is not for you. We will not guide you to risky start-ups, new issues, “penny” mining stocks or speculative options or futures. Instead, we follow a time-tested and prudent buy and hold investing strategy--focused on quality stock selection, financial analysis and 28+ years of turnaround investing experience.
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%: