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.

Small Cap / Food, Beverage, & Tobacco

Amplify Snacks--Hershey’s Acquires at 71% Premium

Specialty snack maker Amplify Snack Brands (BETR) agreed to be acquired by the Hershey Company for $12/share, a 71% premium over Friday’s closing price of $7/share. With the overall food industry showing stagnant growth, snack companies like Amplify offer the food giants a rare opportunity to participate in a rapidly-growing segment.

We highlighted Amplify as a strong turnaround candidate in October (“Amplify Snack Brands Worthy of a Nibble”), describing how its stock had fallen nearly 60% from its October 2015 initial public offering price of $18, to its then-current price of $7.23.

Amplify’s weak share price caught our attention—we became much more interested as it offered a combination of real value with significant positive changes. Its emphasis on “Better-for-You” snacks with allergen-free and GMO-free ingredients, led by SkinnyPop, the nation’s #2 ready-to-eat popcorn brand, provided a strong and growing $400 million revenue base. With a controlling stake held by private equity firm TA Associates, the company had a patient and experienced owner that helped bring in several highly capable senior leaders to accelerate its growth.

For shareholders of Amplify, the acquisition by Hershey’s is a sweet deal right in time for the Holidays.

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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."