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.

Read More Distressed Investing Blog Entries

Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

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Turnaround Investing Blog

IBM: Not Yet Time to Swing at this Pitch

IBM’s stock underperformance since IBM’s current CEO took the helm in 2012 has been stark, with the shares declining 23% while the S&P500 Index has more than doubled. One big problem: revenue growth rate is zero, at best. Without revenue growth, what’s left to entice investors? The real driver of value at IBM – free cash flow that is used to repurchase shares. Can IBM borrow its way to shareholder prosperity as its cash flows shrink? What to do with IBM shares? Wait for a better pitch in the form of a catalyst or much lower valuation. 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.

Read More.

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."