Understanding the Distressed Investment Markets

 

George Putnam’s insightful assessment of distressed investing in 2011 will help you determine where this sector is headed in 2012 and beyond.

 

Understanding the Distressed Investing Market

Fellow Investor,

In my annual “Bankruptcy Investing: Looking Back and Forward” report, I review how the bankrupt and distressed securities markets did in 2011.  I look at the forces that drove these markets and write in detail about high yield bonds and post-reorganization securities.  Additionally, I look at the specific industries that significantly affected this sector in 2011.

This report is a quick read, but it will give you a better understanding of this sector and will help you assess its investing potential moving forward.

Thank you and happy investing.

George Putnam, III, Editor
The Turnaround Letter

 

 

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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

 

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."