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.

Value Investing & Hot Stocks MoneyLife Interview

We thought you might be interested in George Putnam's recent interview with Chuck Jaffe, senior columnist for MarketWatch and host of MoneyLife Radio's "Market Call." Jaffe's weekly columns are syndicated nationally, and his "Your Funds" publication is the nation's most widely-read column on mutual funds.

Jaffe notes, "Everyone loves the idea of a turnaround stock…a turnaround story, but there are specific things that go into a turnaround and that's part of the discipline that allows George to be successful at it….He's got his own definition for it and how it works."

The interview taps George's 30+ years of stock market experience for insight into the "specific methodology" and "discipline" behind his contrarian investing approach. Putnam discusses the troubled energy and retail sectors—with particular emphasis on Macy's vs. Sears: M has solid assets, management and cash flow while "we're not quite sure" how SHLD can solve its mounting challenges.

George notes that a solid turnaround stock prospect "needs new management, assets, improved cash flow or something else that will eventually allow the stock to level off and then rebound." Patience is key with a turnaround situation, however: "…Getting the timing right is extremely difficult….[We] tend to look at things in years rather than quarters."

The interview also shares George's thoughts on Turnaround Letter purchase recommendation General Electric (GE), market timing, the perils of a U.S. Bankruptcy Court filing and the necessity of broad diversification—among other topics. Jaffe concludes his interview with a spirited round of "Hold 'Em or Fold 'Em" to get George's take on listener stock picks, ETFs and mutual funds.

For direct access to a free MP3 of full interview, click the MoneyLife logo below:

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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


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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."