Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Small Cap / Commercial & Professional Services / Retailing

ACCO Financials Announced

On February 15, 2012, ACCO Brands Corporation (NYSE: ABD) reported its fourth quarter results for the period ended December 31, 2011. Net sales decreased 2% to $350.7 million, compared to $359.5 million in the prior-year quarter. Fourth quarter income from continuing operations was $9.4 million, or $0.16 per diluted share, compared to income of $4.3 million, or $0.07 per diluted share, in the prior-year quarter. Comparable earnings increased 26% to $0.29 per diluted share compared to $0.23 per share. Reported fourth quarter operating income increased 17% to $40.0 million, excluding $4.1 million of costs associated with the pending acquisition, from $34.2 million in the prior year quarter. Adjusted EBITDA increased 8% to $52.4 million from $48.3 million in the prior year, also excluding the costs of the pending acquisition. Net sales increased 3% to $1.32 billion compared to $1.28 billion in the prior year. Income from continuing operations was $18.6 million, or $0.32 per diluted share, for the twelve months ended December 31, 2011, compared to income of $7.8 million, or $0.14 per diluted share, in the prior year. Adjusted earnings per share increased 36% to $0.64 per share, compared to $0.47 per share in the prior year. Adjusted EBITDA increased 6% to $168.3 million, from $158.4 million in the prior year, and included a benefit from foreign exchange translation of $8.6 million. The company expects to incur $5-7 million of restructuring charges in the first quarter of 2012 for severance and related expenses, as it streamlines its sales and operations functions in the U.S. and Europe. Savings associated with these actions are expected to be between $5-7 million in 2012, growing to $8 million on a full-year annualized basis thereafter.

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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."