Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Large Cap / Energy

Exxon Outlook Report Released

On December 8, 2011, Exxon Mobil (NYSE: XOM) released its Outlook for Energy: A View to 2040. The Company states, “Demand for energy will rise through 2040 as global economic output doubles and prosperity expands across a world where population will grow to nearly 9 billion people….Extending its annual long-term energy forecast to 2040 for the first time, ExxonMobil said this year's Outlook reveals several trends that will influence how the world uses energy over the coming decades.” The Outlook further projects that global energy demand in 2040 will be about 30% higher than it was in 2010, led by growth in developing regions such as China, India, Africa and other emerging economies. Exxon maintains, “While oil will remain the most widely used fuel, overall energy demand will be reshaped by a continued shift toward less-carbon-intensive energy sources—such as natural gas—as well as steep improvements in energy efficiency in areas like transportation, where the expanded use of hybrid vehicles will help push average new-car fuel economy to nearly 50 miles per gallon by 2040.” In addition, the mix of fuels used to produce electricity will change dramatically, however, as nations shift away from coal in favor of lower-carbon sources such as natural gas, which emit up to 60% less CO2 than coal when used for electricity generation. The report argues that by 2040, 30% of the world's electricity will be produced using natural gas, while demand for coal will peak and experience its first long-term decline in modern history.

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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.

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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.

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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."