Blast from the Past: A Whole New World (November 1987)

On October 19, 1987 the S&P 500 index lost more than 20% in a single day. We thought it might be instructive to look back at what the Turnaround Letter said at the time.

On October 20, 1987 we sent out a special bulletin to subscribers with the advice: “Sit tight and then look for bargains when the dust settles.” Then in the November 1987 issue, we said, “Generally, we think this is a time for cautious buying and not selling…There should now be some good values in the marketplace, particularly in the turnaround area.”

This turned out to be pretty good advice. From its low on October 19, 1987, the S&P gained about 10% through the end of the year, and it rose 57% through the end of 1989. The gain from the 1987 low to the present is more than 500%--without even including dividends.

Read November 1987's "A Whole New World" and watch for future "Blast from the Past" articles to be posted on

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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


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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."