Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Mid Cap / Insurance

Old Republic Financials Announced

On January 26, 2012, Old Republic International Corporation (NYSE: ORI) reported the following results for the fourth quarter and full year 2011: Old Republic's net operating loss for the 2011 fourth quarter was 14.5% lower than the previous year. For full year 2011, however, the loss reached $218.5 compared to $40.6 in 2010. In the aggregate, the general and title insurance segments reflected substantial operating improvements as underwriting accounts turned positive for the first time since 2007. By contrast, the run-off mortgage guaranty business sustained record-high operating losses as incurred claim costs intensified greatly throughout 2011. The realization of much greater investment gains in last year's final quarter was fully responsible for the period's net income. For 2011 as a whole, these gains were approximately 10% higher year-over-year but still insufficient to drive bottom line results into positive territory. Fourth quarter and annual performance in 2011 was mostly affected by a continued downtrend in earned premiums and record-high incurred claim costs. Net investment income dropped as a result of the lower invested asset base driven by the aggregate effect of higher claim disbursements, lower premium volume, termination of insured mortgage pools and a low yield environment for quality securities to which the investment portfolio is directed. Consolidated cash flow from operating activities produced a deficit of $94.9 for the year ended 2011 compared to a deficit of $282.2 for 2010. Most of the year-over-year improvement stemmed from much higher operating cash flows in the general insurance segment.

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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."