Asbestos-Related Securities: Building Value?

December 1, 2006

A number of times in past years we have written about opportunities in the securities of companies that formerly used asbestos in their products. Once highly regarded because of its fire-retardant properties, asbestos was discovered to cause serious (often fatal) lung disease in many people who came in contact with the substance.

Automobiles & Components Mid Cap Small Cap Capital Goods Post-Bankruptcy Stocks

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Turnaround Investing Blog

GameStop Faces Its Battle Royale

The market believes GameStop (GME) is headed toward a relatively quick demise; however, new CEO Mike Mauler's retrenching to bolster its core business is a good strategy. At 2x EBITDA, the lowest multiple in the market for any stock above an $800 million market cap, the shares can do well if the company can slow the decline or if the company is acquired. We don't see a liquidation or transformative acquisition as likely. For highly-risk-tolerant investors, the shares' extreme discount offers the potential for outsized returns. Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.

While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

Turnaround Letter Stock Pick Named Top Performer of 2017

What Last Year's Top Stock Pickers Are Buying in 2018

This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.

George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."