Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Mid Cap / Transportation

Delta Financials Released

On January 25, 2012, Delta Air Lines (NYSE: DAL) reported financial results for the December 2011 quarter. Key points include the following: Delta's net income for the December 2011 quarter was $379 million, or $0.45 per diluted share, excluding special items. This is a $221 million improvement year over year. Delta's net income for 2011 was $1.2 billion, excluding special items, as the company offset $3 billion higher fuel expense through strong revenue performance and its fuel hedging program. Delta's GAAP net income was $425 million, or $0.50 per diluted share, for the December 2011 quarter and $854 million for 2011. Delta's adjusted net debt at the end of 2011 was $12.9 billion, a $4.1 billion reduction from 2009. Delta's operating revenue grew $610 million, or 8%, in the December 2011 quarter compared to the December 2010 quarter. Load factor increased to 81.7%, with traffic down 3% on a 3.5% decrease in capacity. As of December 31, 2011, Delta had $5.4 billion in unrestricted liquidity, including $3.6 billion in cash and short-term investments and $1.8 billion in undrawn revolving credit facilities. Delta's projections for the March 2012 quarter include the following: operating margin of 2 to 4%; fuel price, including taxes and hedges net of premiums of $3.16, capital expenditures are $450 million and total liquidity at the end of the period is $5.5 billion.

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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."