Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Mid Cap / Materials

Terex Financials Announced

On February 15, 2012, Terex Corporation (NYSE: TEX) announced income from continuing operations of $38.8 million, or $0.35 per share, on net sales of $6,504.6 million for the full year 2011, as compared to a net loss from continuing operations of $215.5 million, or $1.98 per share, on net sales of $4,418.2 million for the full year 2010. Excluding the impact of certain items in the full year 2011, income from continuing operations as adjusted would have been approximately $51 million, or $0.46 per share. Excluding the impact of certain items in the full year 2010, loss from continuing operations as adjusted would have been approximately $140 million, or $1.29 per share. For the fourth quarter of 2011 loss from continuing operations was $4.0 million, or $0.03 per share, compared to a loss from continuing operations of $32.5 million, or $0.30 per share for the fourth quarter of 2010. Excluding the impact of certain items in the fourth quarter of 2011, income from continuing operations as adjusted would have been approximately $28 million, or $0.26 per share. Net sales were $1,956.6 million in the fourth quarter of 2011, an increase of 47.5% from $1,326.6 million in the fourth quarter of 2010. Income from operations was $32.0 million in the fourth quarter of 2011, an improvement of $32.5 million as compared with a loss from operations of $0.5 million in the fourth quarter of 2010. Terex’s current outlook for net sales in 2012 is $7.5 to $8.0 billion, an increase of 15 - 20% from 2011, and approximately 5% excluding the impact of 2011 acquisitions. The company expects income from operations to be $475 to $525 million. As a result, it expects earnings per share for 2012 to be approximately $1.65 to $1.85 per share for the year based on an average share count of approximately 116 million shares, excluding the impact of restructuring and unusual items. Capital expenditures for 2012 are expected to be approximately $140 million.

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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."