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.

Worry About What You Can Control

There’s a lot to worry about right now out there in the financial world. The European debt problems, the volatility in the stock market and the gridlock in Washington are probably at the top of many worry lists. You can lose a lot of sleep worrying about matters like these, but it won’t do you much good because you can’t really change any of them. Instead, you should worry about the things that you can control.

For example, you can make sure that your portfolio is well diversified and that you have the right balance between asset classes. You can evaluate your insurance coverage to make sure that it covers your current needs. You can review your estate plan to make sure it is up-to-date and takes advantages of the current wrinkles in the tax code.

At a more granular level, you can re-examine the holdings in your portfolio. Are there any holdings whose risk level has increased due to recent events--for example, European banks or insurance companies? Are there any stocks that you’ve thought about buying in the past that have been beaten down to attractive levels? For example, see the articles about the Dividend Aristocrats and Post-Bankruptcy Stocks in the September 2011 issue of the newsletter.

Not only will you lose less sleep if you don’t worry about the things you can’t change. You’ll probably feel much better if you take some active steps to improve your financial health.

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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.

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

 

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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."