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.

Diversified Financials

As Expected: Cryptocurrencies Evaporate

It’s been a tough year for cryptocurrencies. From its frothy peak price of $19,205 in mid-December 2017, the price of one Bitcoin has collapsed over 65% to about $6,560. Other variants haven’t been so lucky: according to several websites that track them, as many as 800 to 1,000 cryptocurrencies have become effectively worth zero.

In our December 2017 issue of The Turnaround Letter, we shared with subscribers our views on the surge in investor enthusiasm: “…much of the cryptocurrency frenzy reminds us of the internet bubble of 18 years ago.”

As for the fate of most cryptocurrencies, it seems they have followed the path of similar fads. Our prognosis of “Just as most dot-coms were wiped out, we believe most cryptocurrencies will eventually become worthless” appears to be playing out.

A recent Bloomberg article (“Bitcoin Bloodbath Nears Dot-Com Levels as Many Tokens Go To Zero”) describes the current situation well.

Our December article on Bitcoin was a step-out for us as we focus almost exclusively on individual, out of favor stocks with real value and solid turnaround potential. The cryptocurrency bubble caught our eye as something exactly the opposite.

Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

Lessons from the 1st Turnaround Letter of 32 Years ago

In July, 1986, exactly 32 years ago, George Putnam sent the first Turnaround Letter to subscribers. Technology back then seems like the Stone Age, with hard copy research and primitive CompuServe dial-up service. Wall Street ignored turnaround stocks back then and continues to ignore them today. While technology has changed immensely in 32 years, The Turnaround Letter’s philosophy of selecting out-of-favor companies on the verge of turning around hasn’t changed. Our timeless process helped driven The Turnaround Letter’s independently-verified market-beating returns. Read More.

Comparing Stocks Vs. Bonds

While the common stock of a turnaround candidate usually has the greatest upside potential, other classes of securities, such as bonds or preferred stock, may offer attractive profit possibilities with less risk. Many turnaround companies have only one class of securities available to investors but where there are different classes to choose from, it can pay to do a little extra analysis of the various options.

Read More.

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."