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.

Will Amazon Take Over the World? Not Quite.

Excerpted from the July 2017 Issue

It seems that Amazon Fever is reaching new heights. With Amazon’s recent agreement to acquire grocery retailer Whole Foods, the market can’t entirely be faulted for assuming that their ever-growing reach and apparent lack of concern about profits will ultimately take over the economy. And typically, when Amazon enters a new line of business, many of the stocks in that sector fall.

Our informal search on amazon.com returned some fascinating and unexpected products for sale: a $31,861.88 (plus $3.09 shipping) Telescoping Maintenance Lift weighing 1,420 pounds; a $237,250 Lamborghini Huracan (the real thing); a $270,834.42 (used) Cisco Services Module and a Mahatma shipping drone that carries 22 pounds of cargo over six miles selling for $40,000. Could Amazon get into travel services? Or home building? What about chemical production? It’s hard to say; but back in 1997 when Amazon had its IPO as an online bookseller, who would have thought that it would reach half a trillion dollars in market capitalization and begin setting up an air traffic control network in Paris for its incipient global drone fleet?

Amazon certainly is impressive. Realistically though, not every industry will be challenged by their profit-draining expansion, nor will every product be sold at large discounts on amazon.com. In our July Turnaround Letter, we explore a brief selection of companies that would probably be among the last ones to succumb to Amazon Fever. Each has traits that are well outside of the Amazon model, are out of favor and have some interesting turnaround aspects. 

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Identify & Profit from Distressed Investing

Free Report: Distressed Investing

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Free Turnaround Letter Research Report: Bioverativ (NYSE: BIVV)

We're sharing this complimentary copy of our full Research Report for Bioverativ (NYSE: BIVV)—20+ pages of financial analysis, investment philosophy and straightforward explanation. BIVV, our most recent closed out purchase recommendation, brought Turnaround Letter readers 95% stock profit in seven short months. 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


stock market advicex


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."