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.

Mid Cap / Pharmaceuticals, Biotechnology & Life Sciences

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

In addition to our ongoing market commentary, analysis of specific sectors & industries and monthly value stock picks, Turnaround Letter subscribers also have access to institutional quality Purchase Recommendation Research Reports and Updates for all companies in The Turnaround Letter's portfolio. We're sharing this complimentary copy of our full Research Report for Bioverativ (NYSE: BIVV) for your reference—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.

We added this mid-cap pharmaceutical to our active portfolio in April 2017 because Bioverativ had value investing appeal, which is often true of spinoffs. BIVV also had many of the key traits of a successful spin-off: healthy revenue, profit margins and cash flow; a solid capital base; an impressive leadership team and strong R&D, marketing and regulatory capabilities. As an added bonus, Bioverativ even had a highly-regarded, long-term focused activist firm recently take a 7.5% position.  

When analyzing the stock pick, Putnam emphasized, "…following its two-year post-spin waiting period (to preserve tax benefits), Bioverativ could be an appealing acquisition target for larger pharmaceutical companies looking for quality franchises." That prediction soon materialized: In late January 2018, BIVV announced a definitive agreement to be acquired by Sanofi.

Putnam immediately moved the stock to "Hold" status and updated Turnaround Letter readers: "The deal looks solid.….Given the very low risk that the deal is terminated, we are moving Bioverativ to a HOLD, rather than a Sell on the possibility (however remote) of a higher bid from another buyer."

It soon became clear that there was little chance of that, and Putnam advised readers to promptly lock in 95% gains to avoid any risk that the deal might fall through. With BIVV's sale recommendation, 2018's average profit on closed out stock picks stands at 47%

Subscribe now for immediate access to Research Reports and Updates on all of The Turnaround Letter's value stock Purchase Recommendations.

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Boston Beer Company--Time for Investors to Step Up to the Bar?

Boston Beer Company is the nation's largest craft beer company, with 2017 revenues of over $900 million. Since its days as a start-up in 1984, it has led the nation's growing taste for craft beers; and shareholders have enjoyed tasty returns along the way. So why is The Turnaround Letter--which focuses on out-of-favor companies undergoing major positive changes--even thinking about this ostensible "growth" company? 

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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."