Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Large Cap / Software & Services / Technology Hardware, Equipment, & Services

Microsoft Financials Released

On January 19, 2012, Microsoft Corp. (OTC: MSFT) announced quarterly revenue of $20.89 billion for the quarter ended December 31, 2011, a 5% increase from the prior year period. Operating income, net income and diluted earnings per share for the quarter were $7.99 billion, $6.62 billion and $0.78 per share, compared with $8.17 billion, $6.63 billion and $0.77 per share, respectively, in the prior year period. Prior year results include recognition of $224 million of deferred revenue related to the Office 2010 technology guarantee program. The Microsoft Business Division reported $6.28 billion in second quarter revenue, a 3% increase from the prior year period, and a 7% increase excluding the prior year recognition of deferred revenue for the Office 2010 technology guarantee program. The Server & Tools business posted $4.77 billion in second quarter revenue, an 11% increase from the prior year period. The Windows and Windows Live Division posted revenue of $4.74 billion, a 6% decline from the prior period. The Online Services Division reported revenue of $784 million, a 10% increase from the prior year period. The Entertainment & Devices Division posted revenue of $4.24 billion, an increase of 15% from the prior period. Microsoft is revising operating expense guidance downward to $28.5 billion to $28.9 billion for the full year ending June 30, 2012.

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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

 

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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."