This turnaround investing opportunity is a quality company, with typically the #1 or #2 position in its markets--and it is backed by a reasonably solid balance sheet. Valuation is attractive at 13.6x next year’s earnings and 9x 2017 EBITDA.
The aerospace component industry has undergone considerable changes in the past few years. We are optimistic about overall industry demand, which should provide a tailwind to companies that need to step up their game.
A lot has happened in the world since July 2011. In addition to recent events like Brexit, we’ve seen oil prices cut in half (twice), China’s growth go from boom to stall, the Taper Tantrum response to fears of the Fed reducing its quantitative easing program and S&P’s downgrade of U.S. debt. We’ve also seen the S&P 500 Index rise by over 55%. Nearly every non-energy company has participated, with some notable stocks increasing by much more...
Potassium and potash fertilizer producer Mosaic (NYSE: MOS) reported lower earnings on weaker volumes and pricing, but its strong market position and financial condition keep it poised for the eventual recovery.
The Board of Directors of Caterpillar (NYSE: CAT) voted to maintain the quarterly cash dividend of seventy-seven cents ($0.77) per share of common stock, payable May 20, 2016, to stockholders of record at the close of business on April 25, 2016.
Freeport-McMoRan (NYSE: FCX) announced a new organizational structure for its subsidiary Freeport-McMoRan Oil & Gas (FM O&G). The changes are being undertaken to reduce costs, streamline functions and to enhance capital allocation across FCX’s global business in a manner consistent with FCX’s debt reduction initiatives.
Over the past two months we have seen an unusual amount of volatility in some of the lower-priced energy, natural resources and metals stocks. What is causing this volatility? Some of it may be related to “short covering” by hedge funds and others--and some investors may be placing wishful bets on a recovery in natural resource prices.
Commodity metals producer Rio Tinto (NYSE: RIO) announced that Jean-Sébastien Jacques, 44, a four-year Rio veteran and head of the copper and coal unit, will become CEO in July and join the board immediately.
A common temptation is to mix emotions with investing. Your candidate won, and so you are more optimistic--or your candidate lost, and now you’re more pessimistic. Stocks don’t know who you voted for. Avoiding emotionally-driven post-election buying and selling will be beneficial to your financial health.
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:
* Bristow remains in our active portfolio (currently as a Hold), and 2,057% gain is as of 11/9/16.
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."