Large Cap / Banks / Mid Cap / Market Capitalization

Bank Stocks: Can't Get No Respect

Will Bank Stocks Ever Recover?

Although bank stocks have recovered somewhat from the drubbing they received last autumn, they still seem like the Rodney Dangerfield of the stock market.  Every time a bank reports improving results these days, investors treat it with skepticism and disdain.  Because of this, we thought it was worth revisiting the banks even though we have written about them several times over the past year or so. 

Despite a number of headwinds – such as increased regulation – many of the banks look quite cheap to us.  Many are currently trading well below their book value per share.  Before 2008, many healthy banks traded at more than twice book value. Today, earnings are improving, and the risks have been reduced.  Most U.S. banks have reduced their overall leverage significantly since 2008.  In addition, the recent government “stress tests” should provide at least some measure of comfort.  

 In the subscriber-only version of this article we discuss 10 bank stocks that look quite attractive.

 

Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

IBM: Not Yet Time to Swing at this Pitch

IBM’s stock underperformance since IBM’s current CEO took the helm in 2012 has been stark, with the shares declining 23% while the S&P500 Index has more than doubled. One big problem: revenue growth rate is zero, at best. Without revenue growth, what’s left to entice investors? The real driver of value at IBM – free cash flow that is used to repurchase shares. Can IBM borrow its way to shareholder prosperity as its cash flows shrink? What to do with IBM shares? Wait for a better pitch in the form of a catalyst or much lower valuation. Read More.

Comparing Stocks Vs. Bonds

While the common stock of a turnaround candidate usually has the greatest upside potential, other classes of securities, such as bonds or preferred stock, may offer attractive profit possibilities with less risk. Many turnaround companies have only one class of securities available to investors but where there are different classes to choose from, it can pay to do a little extra analysis of the various options.

Read More.

Turnaround Letter Stock Pick Named Top Performer of 2017

 

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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."