Materials

Chemicals; Construction Materials; Containers & Packaging; Metals & Mining; Paper & Forest Products

ARTICLES

This stock is now like a fairly long-term option on commodity prices.

News Notes & Updates - February 2016

These bonds now trade for 40-some cents on the dollar, and they provide a way to play the situation with a little less risk but still decent (though less dramatic) return potential compared to the stock.
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Mining stock poised for a rebound.

Purchase Recommendation - January 2016

Increasing global growth will eventually cause commodity prices to rise again, and when that happens, this large-cap value stock's price will appreciate handsomely. In the meantime, the substantial dividend compensates you while you wait.
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Why should anyone even think about buying a steel or aluminum stock?

Steel & Aluminum Stocks: Definitely Dented

Aluminum producers rank 96th for year-to-date performance out of the 98 Dow Jones U.S. Industry Groups, ahead of only nonferrous metals and coal. Steel producers haven’t fared much better, ranking 92nd. Many of the metals stocks are now trading below their 2008-09 lows. The reason for this poor performance by the aluminum and steel producers can be summed up in a single word: China. As contrarians, we see opportunity here. Many of the steel companies pay reasonably generous dividends, which will compensate you while you wait for an industry rebound, although in this environment none of the dividends can be considered safe.
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George Putnam's Favorite Stocks for 2016

stock picks

Distressed Investing Blog

Distressed Investing Blog

2015 Bankruptcy Recap: 46% Increase Fueled by Oil & Gas/Mining Industry--Further Uptick Predicted

Looking back at 2015, research reveals a 14% decline in overall business bankruptcies but a 46% uptick in public company Chapter 11 filings—with a striking 51% of those filings coming from the battered Oil & Gas/Mining sectors. Economic indicators point to further increases in corporate bankruptcy, in general, and Energy-related filings, in particular. Just a few days into 2016, this viewpoint has already been validated by Arch Coal's long-awaited $8 billion Chapter 11 filing—and continuing oil price plummets severe enough that OPEC will likely convene an emergency meeting to address "shattered" economies. Read More.

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  • The Turnaround Letter's 15-year returns were 11.0%--vs. S&P's 2.9%
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Spotlight: Junk Bond Market

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MarketWatch's Mark Hulbert recently tapped George's distressed investing expertise to determine the fate of the junk-bond market and what its nearly three-year decline likely means for your portfolio.

 

Hulbert writes, "What’s really going on? For insight, I turned to George Putnam, an expert in distressed-company investing. His Turnaround Letter advisory service has handily beaten the stock market over the past 15 years, according to the Hulbert Financial Digest’s tracking, by an impressive margin of 7.3 percentage points a year on an annualized basis."

 

Commenting on the rapid growth of high-yield exchange traded funds (ETF's), Putnam notes, "They have become the investment vehicle of choice for short-term investors….Those investors tend to be trend followers and, therefore, are just the opposite of being contrarian."

 

Read the full MarketWatch junk-bond article to find out what George thinks these recent indicators likely mean for future distressed investing profit.