Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Large Cap / Pharmaceuticals, Biotechnology & Life Sciences

DuPont Guidance Announced

On December 13, 2011, during the 2011 Investor Day at DuPont (NYSE: DD), Company Chair and C.E.O. Ellen Kullman, and other senior leaders detailed the Company’s “dynamic global growth strategy for continuing to deliver strong, sustainable results in 2012 and beyond, contributing to 7 and 12 percent compound annual growth rates for sales and earnings, respectively, in the coming years.” Kullman commented, “Science-powered, market-driven innovation remains the cornerstone of the company. DuPont expects nearly $12 billion of revenue from products introduced in the previous four years, roughly 30% of company sales in 2011. That demonstrates the power of our innovation.” Kullman also told investors that around 75% of the Company’s capital and R&D expenditures are allocated for growth segments and that DuPont anticipates delivering $300 million of both fixed cost and working capital productivity in 2012. DuPont expects full-year 2011 sales to be up about 20%, with double digit increases in most segments. Sales in developing markets are expected to increase 30% this year, comprising about one-third of total Company sales. Earnings are expected to be up between 18-20%. The Company also announced guidance for 2012, with earnings per share in the range of $4.20-$4.40, representing 7-12% growth versus the 2011 guidance midpoint. This range includes about $.17 of additional pension expense. Excluding these additional pension costs, guidance for next year would represent 12-17% growth. The Company expects sales in the range of $40-$42 billion.

Read More Purchase Recommendation Updates

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."