Turnaround Investing Blog

George Putnam, one of the country's leading turnaround and distressed investing professionals, shares his timely insight on the economy and turnaround investing opportunities.

What To Do When a Stock Isn't Gaining

...So you recently bought a turnaround stock, and now it is down 10% from your cost. You’re frustrated and worried that you made a mistake. You have the urge to sell now before the price goes down further. What now? First, manage the emotions. Successful investing in turnaround stocks can be a highly emotional experience.
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Distressed Investing: How to Evaluate Potential Pay-Off

At its most basic, evaluating potential pay-off is straightforward--determine what the company could be worth if it recovers, then parse out the value between the debt and equity to estimate the potential upside; but traditional metrics like price/earnings ratios, price/book value ratios and dividend yields generally aren’t useful. Instead, investors should look to Enterprise Value/Ebitda on a post-recovery basis as an effective valuation method.
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Turnaround Letter's "Uncomfortable" Stocks Gain 35%

A lot has happened since our August 2016 “Time to Move Out of the Comfort Zone” article, which focused on companies that were out of favor due to their “high volatility” earnings and share prices. While the market had ignored the six companies we featured, these “uncomfortable” stocks went on to produce some impressive returns, gaining an average of 35.1% as of March 15, 2017.
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Distressed Investing: How to Evaluate Turnaround Prospects

When a company is distressed, its assets are probably worth less than its debts. The best indicator of whether a distressed company will recover is its willingness and speed in dealing directly with that reality. The Turnaround Letter tells investors how to evaluate if a troubled company can execute a successful turnaround.
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Unloved “Trump” Stocks Meet Warren Buffett

Excerpted from the March 2017 Issue
Although the stock market has shown great enthusiasm for many companies that could benefit from regulatory reform and increased government spending (so-called “Trump” stocks), as well as other companies that will be aided by higher and more stable oil prices, it has overlooked several that could be particularly direct beneficiaries.
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Distressed Securities: Digging Deeper

The ultimate goal in evaluating a distressed security is answering this question: is there anything here worth investing in? If not (perhaps the company has so little value that even the most senior traded bond would not have much recovery), then it’s time to move on. But if there is meaningful value, then it’s time to look deeper.
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How to Find Promising Distressed Securities

George Putnam continues his series on investing in distressed securities--this time focusing on how to find publicly traded distressed securities that might be promising investment candidates.
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Top Value Stocks for 2017--Free E-Report

Although George hates to choose favorites among his stock picks, this free e-report details The Turnaround Letter's Top Five Turnaround Stocks for 2017--including a diverse selection with several post-bankruptcy value stocks poised for a rebound. This is the perfect tool to grow your turnaround investing portfolio and lock in stock profit in a potentially turbulent stock market.
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Energy's Wild Ride--Energy Sector Bankruptcies E-Report

BankruptcyData's Energy Sector Bankruptcies report anticipates that overall Chapter 11 activity will remain at a high level for the foreseeable future. Energy company filings have probably peaked and will gradually decline over the next 12 to 18 months, so the flow of bankruptcies will likely shift toward a more diverse group of industries. In time, this could contribute to an opportunity-rich market for distressed debt and post-reorganization stocks.
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Dow Hits 20,000, But These Dogs Are Still Sitting On The Porch

Excerpted from the February 2017 Issue
We created a different version of the Dogs of the Dow: We selected the seven stocks that have completely missed the rally over the past three years. If these lazy dogs get off the porch, they could have a market-beating run. All seven are solid, well-run companies with healthy balance sheets. Many offer attractive yields. Some offer defensive traits should the stock market or oil prices turn downward. Others have unique company-specific aspects that could bring them back to life.
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Identify & Profit from Distressed Investing

Free Report: Distressed Investing

Turnaround Investing Blog

Turnaround Investing Blog

Free Turnaround Letter Research Report: Bioverativ (NYSE: BIVV)

We're sharing this complimentary copy of our full Research Report for Bioverativ (NYSE: BIVV)—20+ pages of financial analysis, investment philosophy and straightforward explanation. BIVV, our most recent closed out purchase recommendation, brought Turnaround Letter readers 95% stock profit in seven short months. Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.

 

Value Investing

 

While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

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."