Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Small Cap / Transportation

Drew Industries Results Reported

On February 13, 2012, Drew Industries Incorporated (NYSE: DW) reported net income for the fourth quarter ended December 31, 2011 of $4.1 million, or $0.18 per diluted share, compared to net income of $3.1 million, or $0.14 per diluted share in the fourth quarter of 2010. Net sales in the 2011 fourth quarter increased 50% compared to the 2010 fourth quarter, to $160 million, as a result of a 51% increase in Drew's RV Segment sales, and a 45% increase in Drew's Manufactured Housing Segment sales. Net sales in January 2012 reached approximately $65 million, 28%-higher than in January 2011. Excluding the impact of sales price increases and acquisitions, net sales for January 2012 were up approximately 10%. Net sales for the year ended December 31, 2011 increased 19% to $681 million, compared to $573 million in 2010. Drew's RV Segment sales increased 20%, compared to a 7% increase in industry-wide wholesale shipments of travel trailers and fifth-wheel RVs. For the full year 2011, Drew's net income increased to $30.1 million, or $1.34 per diluted share, compared to net income of $28.0 million, or $1.26 per diluted share in 2010. Net income in 2011 was impacted by higher raw material costs, higher production costs in one product line, and start-up costs, which reduced earnings by an aggregate of approximately $0.32 per diluted share. Drew's RV Segment reported operating profit of $5.3 million, on net sales of $131 million in the 2011 fourth quarter, compared to operating profit of $6.4 million on net sales of $87 million in the comparable period in 2010. For the full year 2011, the Company's RV Segment reported operating profit of $45.7 million on net sales of $571 million, compared to operating profit of $44.4 million on net sales of $477 million in 2010. At December 31, 2011, the Company had cash of $7 million, compared to cash and short-term investments of $44 million at December 31, 2010. Capital expenditures were $6.6 million in the 2011 fourth quarter and $24.3 million for the full year. Depreciation and amortization aggregated $5.5 million in the 2011 fourth quarter and $20.5 million for the full year.

Read More Purchase Recommendation Updates

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.

Read More.

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.

Read More.

Turnaround Letter Stock Pick Named Top Performer of 2017

 

stock market advicex

 

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."