Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Large Cap / Telecommunication Services

Sprint Financials Released

On February 8, 2012, Sprint Nextel Corp. (NYSE: S) reported adjusted financial results for the fourth quarter and full year of 2011. The company reported a net loss of $1.3 billion and a diluted loss of $.43 per share for the quarter, which includes pre-tax, non-cash charges of $241 million, or $.08 per share, consisting of asset and impairment charges of $78 million on property, plant and equipment, $135 million on Sprint’s investment in Clearwire and $28 million in severance costs. Full year 2011’s net loss was $2.9 billion, or $0.96 per share, on net operating revenues of $33.7 billion—compared to a net loss of $3.5 billion, or $1.16 per share, in 2010. Consolidated net operating revenues of $8.7 billion for the quarter were 5% higher than in the fourth quarter of 2010 and the third quarter of 2011. Total wireless net operating expenses were $8.4 billion in the fourth quarter, compared to $7.6 billion in the year-ago period and $7.4 billion in the third quarter of 2011. Adjusted OIBDA was $842 million for the quarter, compared to $1.3 billion for the fourth quarter of 2010 and $1.4 billion in the third quarter of 2011. The company expects 2012 adjusted OIBDA to be between $3.7 billion and $3.9 billion. Within that adjusted OIBDA expectation, we anticipate full year consolidated net service revenue growth of 4 to 6%. Sprint expects full year capital expenditures of approximately $6 billion in 2012, excluding capitalized interest. As of December 31, 2011, the company’s total liquidity was approximately $6.7 billion, consisting of $5.6 billion in cash, cash equivalents and short-term investments and $1.1 billion of undrawn borrowing capacity available under its revolving bank credit facility.

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Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

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."