Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Large Cap / Semiconductors & Semiconductor Equipment

Taiwan Semiconductor Quarterlies Released

On January 18, 2012, Taiwan Semiconductor (TSMC) (NYSE: TSM) announced consolidated revenue of NT$104.71 billion, net income of NT$31.58 billion, and diluted earnings per share of NT$1.22 (US$0.20 per ADR unit) for the fourth quarter ended December 31, 2011. Year-over-year, fourth quarter revenue decreased 4.9% while both net income and diluted EPS decreased 22.5%. Compared to third quarter of 2011, fourth quarter of 2011 results represent a 1.7% decrease in revenue, and a 3.9% increase in both net income and diluted EPS. In US dollars, fourth quarter revenue decreased 5.4% from the previous quarter and decreased 4.5% year-over-year. Gross margin for the quarter was 44.7%, operating margin was 31.4%, and net margin was 30.2%. “Although the outlook of the global economy remains uncertain, we expect the demand for our wafers to be stronger than seasonal for the first quarter,” said Lora Ho, S.V.P. and Chief Financial Officer of TSMC. “Based on our current business outlook and exchange rate assumption of 1 US dollar to 30.25 NT dollars, management expects overall performance for first quarter 2012 to be as follows”: Revenue is expected to be between NT$103 billion and NT$105 billion; gross profit margin is expected to be between 42.5% and 44.5% and operating profit margin is expected to be between 28.5% and 30.5%. TSMC further expects the capital expenditures for 2012 to be about US$6 billion.

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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

 

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."