Ten Simple Tips That Will Ensure Turnaround Investing Success
Fellow Investor,
Year in and year out, many of the biggest winners on Wall Street are troubled companies that have turned themselves around and returned to favor with investors. Obviously not every troubled company is going to turn into a success story; therefore, one of the keys to successful distressed investing is identifying the companies that have real turnaround potential.
There is indeed a science to identifying turnaround investment opportunities, but you definitely do not have to be a Wall Street analyst to succeed in this sector.
I invite you to download my free 10 Ways to Spot Turnaround Opportunities report in which I discuss what I look for in a troubled company that tells me if it has real turnaround potential.
The tidbits contained in this report will serve as your “cheat sheet” when considering any and all investing decisions. They certainly have served me well over the last 25 years.
Consider how well The Turnaround Letter recommended stocks have performed:
-
10.6% return over the last 10 years is more than 8 times higher than the S&P return during that same period.
-
Ranked by the Hulbert Financial Digest as the 2nd best performing investment newsletter over the last 20 years.
-
Our last six sale recommendations Teradyne, Flextronics, Williams Company, Ariba, Inc., Global Crossing and On Assignment, Inc., had returns of 328%, 247%, 92%, 138%, 103% and 99% respectively.
Thank you and happy investing.
George Putnam, III, Editor
The Turnaround Letter
Questions?
Why are you giving away this report for free?
It is just our way of promoting The Turnaround Letter. The more you know about how we think and why we make the recommendations that we do, the more you will be interested in becoming a member of our community.
Will I be charged in any way?
This report is absolutely FREE. We do not ask for a credit card, a check or any form of payment.
Why do I need to register and why do you need my e-mail?
The report and registration are FREE and by registering you will not only get the report but you be able to take advantage of other features on The Turnaround Letter website that are available to registered viewers only.
After giving you my e-mail, will I be spammed?
We hate spam as much as you so we will protect your privacy. Privacy policy
Turnaround Tips
TLCorner
Where Are the Customers' Yachts?
This headline could easily apply to Goldman Sachs today, as recently described by former employee Greg Smith. Actually, it is the title of a book written in 1940 by a former Wall Street employee named Fred Schwed, Jr. The title refers to a story about person admiring the yachts owned by bankers and brokers who asks where the customers' yachts were. Of course, the customers, who had dutifully followed the advice of the bankers and brokers, couldn’t afford yachts. This just goes to show that there is nothing new about the attitude that Goldman Sachs employees were purported (probably accurately) to have about their clients. It was just as true in 1940--and likely has been forever--as it is now.
Read More.Beware of Trendy Turnaround Candidates - Even Green Ones
Don't Chase the Headlines
The recent unfortunate accident involving the Costa Concordia cruise ship, which is owned by a subsidiary of Carnival Corp., raises an important investing question: Should you bail out of a stock if the company is affected by a serious negative event? Unless the event could be part of a series or trend, the answer is usually “no,” for two reasons.
Read More.What did The Turnaround Letter see that others did not?
Questions & Tips
AskGeorge
Now that Greece's latest bailout is complete, is it safe to buy European stocks again?
We’re not at all sure that either Greece’s or Europe’s troubles are truly behind them. But that said, we also believe that it makes sense to have some European exposure in your portfolio. The advice we gave in the November 2011 issue still holds...
Read More.With so much turmoil and uncertainty in the U.S. economy, and even more fear of collapse overseas, do you ever recommend just getting out of the stock market all together and hunkering down with something safer like bonds?
I never recommend getting out of the stock market entirely--or even making major changes to your allocation to stocks. The stock market is so unpredictable that if you bail out, the risk is very high that you will miss a significant upturn. Moreover, even if you make the right call to get out of the market, you then have to muster the courage to get back in.
Read More.What is your opinion on investing in foreign turnaround companies?
There are certainly good opportunities in foreign turnarounds, but also very significant risks as well. The market inefficiencies that provide unusually high return potential for turnarounds here in the U.S. are probably even greater in foreign markets. However, there may be special, local features that affect foreign companies that we may not understand when we view them from afar.
Read More.Bankruptcy Investing
George reflects on bankruptcy investing activity & trends seen in 2010. Read more.