Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Mid Cap / Diversified Financials

MGIC Investment Financials Announced

On January 24, 2012, MGIC Investment Corporation (NYSE: MTG) reported a net loss for the quarter ended December 31, 2011 of $135.3 million, compared with a net loss of $186.7 million for the same quarter a year ago. Diluted loss per share was $0.67 for the quarter ending December 31, 2011, compared to diluted loss per share of $0.93 for the same quarter a year ago. The net loss for the full year ending December 31, 2011 was $485.9 million, compared to a net loss of $363.7 million for the full year 2010. For the full year 2011, diluted loss per share was $2.42 compared to a diluted loss per share of $2.06 for the full year 2010. Total revenues for the fourth quarter were $447.0 million, compared with $361.1 million in the fourth quarter last year. Net premiums written for the quarter were $263.8 million, compared with $271.4 million for the same period last year. Net premiums written for the full year 2011 were $1.064 billion, compared with $1.102 billion for the full year 2010. At December 31, 2011, the percentage of loans that were delinquent, excluding bulk loans, was 13.79%, compared with 14.94% at December 31, 2010 and 15.46% at December 31, 2009. Losses incurred in the fourth quarter were $482.1 million up from $448.4 million reported for the same period last year due to an increase in the estimated claim rate on primary defaults that occurred in prior periods. For the full year 2011, losses incurred were $1.715 billion compared to $1.608 billion in 2010. For 2012, the company expects new insurance written to be modestly higher than 2011, total paid claims to be lower than 2011 and primary delinquent inventory will continue to decline. In addition, new delinquency notices are expected to continue to decline in 2012, on a year over year basis while cure rates will slowly improve throughout the year and home prices are expected to be flat.

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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."