Bankruptcy/Chapter 11 / Large Cap / Mid Cap / Banks / Small Cap / Diversified Financials / Energy / Post-Bankruptcy Stocks / Technology Hardware, Equipment, & Services / Telecommunication Services

Bankruptcy Update


Want to know what George Putnam is recommending to readers of his Turnaround Letter? The articles previewed below offer you a sneak peak of the quality content and sound investment guidance you can trust. To view his most recent recommendations click here.



Bankruptcy Update

Bankruptcy filings in 2012 looked a lot like 2011. The total number of public companies filing for Chapter 11 through December 21, 2012 was just a hair below the total for 2011, and there will probably be a few more filings by year end. The total assets going into Chapter 11 in 2012 fell somewhat below the 2011 totals, both including and excluding financial companies. (We usually exclude financial companies from the asset totals because they always show very large asset numbers on their balance sheets, which skews the asset totals in certain years. For example, in 2008 the total asset figure reported by just one financial company, Lehman, was more than ten times the total assets for all 125 non-financial bankruptcies that year.)

The biggest bankruptcy filers of 2012 come from a wide variety of industries. There were several large financial companies entering Chapter 11 once again this past year as that sector is still sorting itself out after its upheavals in 2008. The only other common theme among the largest bankruptcies in 2012 was energy.  Four of the ten largest Chapter 11 filings this year were related to energy in some way: Edison Mission (power generation), Overseas Shipholding (petroleum shipping), Patriot Coal (coal production) and ATP Oil & Gas (oil and gas production). The low price of natural gas, mentioned in the first article, probably played at least some role in all four of these filings.

We expect an increase in large bankruptcy filings in 2013. Read the full, subscriber-restricted article to find out why--and to determine if there are bankruptcy investing opportunities to be found in the current crop of bankruptcies.



Read your free preview of The Turnaround Letter's most recent recommendations now!









Identify & Profit from Distressed Investing

Free Report: Distressed Investing

Turnaround Investing Blog

Turnaround Investing Blog

Return of Volatility? No, Return of "Normal"

Sizeable market moves can increase the temptation to sell on downdrafts and buy on upswings; however, we strongly advise against attempting to do that. The chances of getting out at the right time and then back in again before the market rebounds are extremely slim. 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.


Value Investing


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


stock market advicex


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."