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.

Post-Bankruptcy Stocks / Transportation

DAL Stock Pick Yields 227% Returns

Making Delta the Newest Member of “200 Club”

The Turnaround Letter recently suggested investors lock in stock profit and unload Delta Air Lines (DAL)—resulting in a 227% increase from its price at the time of our October 2011 purchase recommendation. We advised Delta’s sale after the Company reported good numbers and saw a nice rise in stock price. Although we’ve been enjoying this very good gain with DAL’s stock--and there’s always a temptation to ride all the way to the top--I wanted to follow my own contrarian investing advice offered in the November 2013 article “Sell When They Want to Buy; Buy When They Want to Sell.”

As our distressed investing blog explains, The Turnaround Letter often recommends selling stocks that are performing very well--like DAL. One of the keys to making money in the stock market is being content with taking solid profits and leaving the pigs to fight over the last few points. I’m very content with Delta’s impressive returns, which made this company the newest member of our esteemed “200 Club.”

Of course, not all purchase recommendations perform so well, but the list below reflects our value investing stock picks that have achieved returns of 200%—or better:

  Turnaround Letter 200 Club:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* As of publication date, Bristow Group remains an active purchase recommendation, and the 11,020% returns reported above reflects the stock’s closing price as of 11/18/13.

 

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Amazon = US GDP 1970

Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached. Read More.

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.

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."