Recommendation Updates

Follow the latest news on active Turnaround Letter purchase recommendations.

Large Cap / Energy / Materials / Semiconductors & Semiconductor Equipment

Applied Materials Quarterlies Released

On February 16, 2012, Applied Materials, Inc. (NASDAQ: AMAT) reported results for its first quarter of fiscal 2012 ended January 29, 2012. Silicon Systems Group orders were $1.42 billion, up 53% reflecting increased demand in foundry and the addition of Varian's business. Net sales were $1.34 billion, up 26%. Non-GAAP operating income increased to $386 million or 29% of net sales. GAAP operating income was $271 million or 20% of net sales. New order composition was: foundry 57%, logic and other 14%, flash 19% and DRAM 10%. Applied Global Services orders were $517 million, down 8%. Net sales were $534 million, down 15%, in line with the company's expectations. Display orders were $40 million, reflecting ongoing weakness in LCD TV equipment demand. Net sales were $104 million, down 39%, and non-GAAP operating income decreased to $7 million or 7% of net sales, driven by the decrease in net sales. GAAP operating income was $5 million or 5% of net sales. Energy and Environmental Solutions orders were $33 million, down 62%, reflecting solar industry overcapacity. Net sales were $207 million, down 34%. The segment had a non-GAAP operating loss of $17 million and a GAAP operating loss of $23 million. For the second quarter of fiscal 2012, Applied expects net sales to be up 5 to 15% sequentially. The company expects non-GAAP EPS to be in the range of $0.20 to $0.28.

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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."