Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Large Cap / Food, Beverage, & Tobacco / Food & Staples Retailing

Coca-Cola Agreement Announced

On December 14, 2011, Aujan Industries, one of the largest independent beverage companies in the Middle East, and The Coca-Cola Company (NYSE: KO) announced a binding agreement for The Coca-Cola Company to acquire approximately half of the equity in Aujan's existing beverage business. Once closed, this $980 million transaction will provide Saudi Arabia-based Aujan Industries a platform to accelerate the international growth of the Aujan brands, including Rani and Barbican, while enhancing the regional outlook for licensed brand Vimto. The transaction will present The Coca-Cola Company a significant equity stake in one of the leading still beverage businesses in the Middle East. This transaction represents the largest-ever investment by a multi-national firm in the Middle East's fast moving consumer goods sector, reflecting the strength of Aujan's operations. Aujan holds a top-three position in still beverages in every country in which it operates and is one of the top 100 companies in Saudi Arabia with total annual revenues exceeding $850 million. Under the terms of the agreement, The Coca-Cola Company will acquire 50 percent of the Aujan entity that holds the rights to Aujan-owned brands, and 49% of Aujan's bottling and distribution company. The licensed brand Vimto will remain with the Aujan-managed bottling and distribution company. The Coca-Cola system, which currently employs more than 40,000 people across the Arab world, announced in October 2011 that it would invest $5 billion in the Middle East and North Africa region over the next 10 years.

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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."