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Article from Current Issue of The Turnaround Letter
Want to know what George Putnam is recommending right now? His most recent Turnaround Letter article is previewed below--offering you a sneak peak of the quality content and sound investment guidance you can trust.
As we approach the so-called “fiscal cliff,” investors are clearly very nervous about defense stocks. Most of the stocks in this sector fell very sharply after the election, and while they have bounced back somewhat since mid-November, they still look pretty cheap to us.
Of course, these investor concerns are not completely unfounded. If Congress and the White House cannot come up with a compromise and we go over the “cliff,” there would be mandatory cuts in federal defense spending. Our best guess--and we emphasize “guess”--is that Washington will find a way to avoid the cliff. But we also believe that most, if not all, of the risks from the cliff are already priced into defense stocks.
Also, many of the defense stocks spotlighted in our full-text, subscriber-restricted December 2012 Turnaround Letter pay healthy dividends, which should dampen any cliff-related volatility. Many of these hot stock picks have also been stockpiling cash over the last couple of years, which they could use to further enhance their dividends or to repurchase stock.
The December 2012 issue of The Turnaround Letter also includes "Year-End Bounce Candidates: Losers Become Winners (At Least For A While)." You can also view a free preview of the article to learn which stocks to buy now to benefit from year-end calendar quirks.