Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Large Cap / Household & Personal Products / Retailing

Johnson & Johnson C.E.O. Named

On February 21, 2012, Johnson & Johnson (NYSE: JNJ) announced that its Board of Directors has named Alex Gorsky as Chief Executive Officer of Johnson & Johnson, effective April 26, 2012, the date of the Company's annual shareholders’ meeting. Mr. Gorsky was also nominated for election to the Board of Directors. Mr. Gorsky, 51, currently Vice Chairman of the Company's Executive Committee with responsibility for the Medical Devices & Diagnostics Group, Global Supply Chain, Health Care Compliance & Privacy and Government Affairs & Policy, succeeds Bill Weldon, who has served as Chairman and C.E.O. of Johnson & Johnson since 2002. Mr. Weldon remains Chairman of the Board of Directors. As C.E.O., Mr. Gorsky will assume full management responsibilities for Johnson & Johnson, including those currently reporting to him and to Mr. Weldon. As Vice Chairman of the Executive Committee, Sheri S. McCoy will report to Mr. Gorsky when he assumes the role of C.E.O. She will continue to lead the Pharmaceuticals and Consumer Groups, and maintain responsibility for Information Technology. Mr. Gorsky will succeed Mr. Weldon, 63, as Chairman of the Company's Executive Committee on April 26. Mr. Weldon will relinquish his role on the Executive Committee at that time and work with Mr. Gorsky in the interim to ensure a seamless transition of leadership. Mr. Gorsky began his Johnson & Johnson career in 1988 as a sales representative with Janssen Pharmaceutica in the Pharmaceuticals business. Over the next 15 years, he advanced through positions of increasing responsibility in sales, marketing and management. In 2001, he was appointed President of Janssen, and in 2003, promoted to Company Group Chairman of Johnson & Johnson's pharmaceuticals business in Europe, the Middle East and Africa. He left the Company in 2004 to join the Novartis Pharmaceuticals Corporation, where he served as head of the company's pharmaceuticals business in North America. Four years later, he returned to Johnson & Johnson as Company Group Chairman and Worldwide Franchise Chairman for Ethicon in the medical devices business. In 2009, he was appointed Worldwide Chairman of the Surgical Care Group and to the Johnson & Johnson Executive Committee. He was appointed Vice Chairman of the Executive Committee in January 2011. Mr. Gorsky holds a Bachelor of Science degree from the U.S. Military Academy at West Point, NY, and spent six years in the U.S. Army. In 1996, he earned a Master of Business Administration degree from the Wharton School of the University of Pennsylvania.

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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."