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.

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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2016 Bankruptcy Review: More & Bigger

Excerpted from the January 2017 Issue
While we believe that overall bankruptcy activity will remain at a high level for the foreseeable future, we think that filings in the energy sector may have peaked. We are optimistic that the increasing bankruptcy activity will provide some very attractive opportunities for turnaround investors.
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How To Find Good Value Stocks When They Are Scarce

With U.S. stocks well into their eighth year of a bull market and the economy showing increasing signs of strength, finding ideal turnaround stocks--those with all three ingredients--can be a needle-in-the-haystack project at best. What is an investor to do in a seemingly barren value stock landscape?
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Looking Back at 2016 and Ahead to 2017: Stock Market Recap & Forecast

Excerpted from the January 2017 Issue
The market’s previous assumptions about the U.S. economy--sluggish growth, rising government regulation, near-zero interest rates--seem to have reversed overnight with the election of Donald Trump. We think the changes run deeper. Households and companies are starting to move past the financial crisis, which peaked eight years ago. Demand is picking up. With it, there is a good chance that the deflationary environment is shifting back toward inflation. Trump’s election could further boost growth through more government spending and fewer regulations. Risks to the markets may increase in 2017, and investors prepared for volatility can better hold firm when it arrives.
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Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

Tupperware: Not a Good Fit as a Turnaround Stock

At first glance, the shares have decent appeal as a turnaround investment. Looking deeper, however, the fundamentals are not as strong and stable as they appear. Surplus cash flow is tight, a key driver is weakening, it is increasingly reliant on China and has other nagging issues. We don’t see the new CEO as a catalyst for change. Despite the “first glance appeal”, Tupperware isn’t a good fit as a turnaround stock. Read More.

Comparing Stocks Vs. Bonds

While the common stock of a turnaround candidate usually has the greatest upside potential, other classes of securities, such as bonds or preferred stock, may offer attractive profit possibilities with less risk. Many turnaround companies have only one class of securities available to investors but where there are different classes to choose from, it can pay to do a little extra analysis of the various options.

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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."