- The Newsletter
- Meet George
- Investment Advice
- How to Use The Turnaround Letter
- Recommendation Updates
- Recommendation Research Reports
- Our Portfolio
- Current Letter
- Previous Turnaround Letters
- Closed Out Recommendations
- Catalysts Report
- Turnaround Investing Reports
- Bankruptcy Confirmations & Securities
- Turnaround Investing Blog
One of the characteristics we often like to see in a turnaround stock is a change in top management. Many times the management that led a company into trouble is not going to be able to fix the problems. A turnaround often takes special skills that many CEOs lack. Moreover, a new leadership team can take a fresh look at the company’s business and not be burdened by past mistakes.
However, it can take time to execute a turnaround, even for a skilled group of executives. This led us to look at the class of new CEOs who took over struggling companies in 2012. As they approach their second anniversary in office, they should be beginning to hit their stride.
Our most recent contrarian investing newsletter identifies nine companies that, in addition to new CEOs, have some of the other key characteristics that we like to see in turnaround situations—including strong core businesses, well-known brands and decent balance sheets.