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.

Stocks That Pay Dividends

These Hotel Stock Picks Have Room for More Gains

Excerpted from November 2013 Issue

The hotel and motel sector offers an appealing contrarian investing opportunity with strong fundamentals and value stock designation. While the group has performed decently, current industry conditions are very favorable and suggest more gains are ahead.

Like most sectors, the key drivers of performance in the hotel/motel are supply and demand. Demand comes from travelers, particularly business travelers, and this has been growing nicely over the last couple of years. Supply comes from the construction of new hotel rooms, and that is lagging well below historical averages because it is still difficult to get financing.

Growing demand and static supply means that hoteliers should be able to continue to raise room prices, which is great for the bottom line. Moreover, because most of these companies are structured as real estate investment trusts (REIT’s), increasing profits will mean growing dividends. Read the full article, which details 7 lodging industry turnaround stock picks.

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Identify & Profit from Distressed Investing

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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."