What is a turnaround stock?

Wondering where to invest your hard-earned money in today’s economy? Turnaround stock picks should be a part of every well-diversified portfolio, and The Turnaround Letter’s 53% average annual profit on 2015's closed out purchase recommendations demonstrates why.

Lucrative stock profit potential can be found among temporarily out-of-favor companies. The strategy with turnaround investing is relatively simple: Beaten down stocks with real value will prevail regardless of the overall market and/or short-term set backs. Of course, not all distressed companies meet our selective criteria for a potential turnaround opportunity. For a down-and-out stock to offer true contrarian potential, the company must be poised for a rebound--and that is where The Turnaround Letter can help.

You need trustworthy, straight-forward stock market advice. George Putnam has offered precisely that for the past 30 years, successfully separating the wheat from the chafe to uncover extraordinarily profitable stocks. In fact, The Turnaround Letter's 15-year 11.0% annualized return (as of 12/31/15) is nearly 4x the S&P 500's, making The Turnaround Letter one of the top performing investment newsletters on the market during that stretch!

Prudent turnaround investing choices in

Bull and Bear Markets.

Not only do individual investors shun turnaround stocks, so do banks, insurance companies, pension funds and Wall Street, in general. Unlike with the heavily-analyzed and traded "blue chips," Main Street investors truly can--and do--realize substantial gains with turnaround stocks. MarketWatch recently explored why value/turnaround stocks grow in both bull and bear markets; and why top advisors, like George Putnam, "do not engage in market timing."

…but what about risk?

The Turnaround Letter knows that your financial security is serious business. While all investing requires some speculation, George Putnam’s approach minimizes that inherent risk. We believe there is much less risk in a “troubled” stock, which has already been hammered down by the market, than in a “hot” stock trading at 30 or 40X earnings.

The bigger they are, the harder they fall.

A hot growth stock can come crashing down with even the slightest rumor, bad news or perhaps even good news that wasn’t quite as good as Wall Street anticipated. A stock that is already perceived as troubled, however, may hardly budge on that same news. With turnaround stocks investors have already anticipated the worst. In other words, a little more bad news is unlikely to impact that otherwise appealing turnaround stock.

“A pessimist sees the difficulty in every opportunity;

an optimist sees the opportunity in every difficulty.”

~ Winston S. Churchill

Having said that, turnaround investing is not without pitfalls. Not every distressed investing situation is going to result in a glowing success story, which is why it is imperative to invest wisely. George Putnam’s Turnaround Letter offers the reliable, proven expertise you need, and its 15-year average annual return rate of 11.0% (as of 12/31/15) means you can confidently invest in these turnaround stocks poised for long-term profit.

We know there are plenty of investment options available out there. George Putnam's Turnaround Letter is here to help identify turnaround stock picks for market-beating results.

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.

Your Financial Security is Serious Business...

so why should you trust The Turnaround Letter?

  • The Turnaround Letter's 15-year returns were 11.0%--vs. S&P's 2.9%
  • 30 Years of Turnaround Investing Experience & Reliable Stock Market Advice
  • 2015's Closed Out Purchase Recommendations Averaged 53% Stock Profit
  • Diverse Monthly Stock Picks Personally Selected by George Putnam

Spotlight: Junk Bond Market

stock market advice

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.