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

Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

Is there value in bankrupt PG&E’s stock?

In nearly every case, the shares of a company in bankruptcy become worthless. In very rare cases, however, they can become great investments. W.R. Grace (NYSE:GRA) shares produced a 75-fold return, as an example. With California utility PG&E (NYSE:PCG) now in bankruptcy, the range of possible outcomes for its equity is wide.

Read More.

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.

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."