While this value stock offers considerable upside potential, it also carries significant risk.
Purchase Recommendation - July 2017
This small-cap stock pick disappointed investors almost from its first day as a public company, yet the Company has a lot of contrarian investing appeal: First, the accumulation of black marks has completely soured investors, leaving its shares trading at only 6.4x current year EBITDA. Further, its balance sheet and positive cash flow give the Company plenty of time for the fundamentals to rebound. Moreover, the Company continues to aggressively improve its cash flows in the face of its 62% revenue decline since 2014 and its positive free cash flow appears to be sustainable. With its considerable financial and operating leverage, this value stock is well-positioned to benefit from several opportunities.Small Cap Real Estate
Identify & Profit from Distressed Investing
Turnaround Investing Blog
Recently I was asked how my investing perspective changed over the 32 years of publishing The Turnaround Letter. It's a fascinating question because change is constant, and often beneficial (although that's not a given) in the business world. If change is the norm, can investing principles stay constant? I firmly believe that they can.
EV/EBITDA: What Is It & Why Are We Using It More?
In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple. We thought it might be useful to describe this measure and why we like it.
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."
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