Large Cap / Mid Cap / Bonds / Small Cap / Emerging Markets/International Stocks / Energy / Materials

Metal Turnaround Stocks: From Laggards to Leaders Preview


Want to know what George Putnam is recommending to readers of his Turnaround Letter? The articles previewed below offer you a sneak peak of the quality content and sound investment guidance you can trust. To view his most recent recommendations click here.



Metal Turnaround Stocks: From Laggards to Leaders?

In 2012 most asset classes (such as stocks and bonds) performed well, but a noticeable laggard was commodities and commodity-related investments. Among other things, that asset class was hurt by concerns about the downturn in the European economies and a possible slowdown in China. As a result, the steel and aluminum stocks were among the worst performers in the global stock markets.

This grabbed our attention for two reasons, one technical and the other fundamental. On the technical side, investor views can change rapidly, and we’ve often seen one year’s losers become the next year’s winners.

On the fundamental side, there are several economic factors that could work to the benefit of the metals producers. Over the last decade or so, there has been steady consolidation in the sector. Large producers have gobbled up smaller producers around the globe, thereby reducing competition. Low energy prices in North America will help the U.S. metals companies. There are signs of a nascent rebound in construction in the U.S.--homebuilding is already on the mend, and commercial construction usually follows. There are also signs that the slowdown in China may not be as great as many investors feared.

Put all these things together and it makes the steel and aluminum stocks look like very attractive turnaround investment candidates. The stocks detailed and recommended in the February 2013 Turnaround Letter are all large, global producers that would benefit greatly from a rebound in the sector.



Read your free preview of The Turnaround Letter's most recent recommendations now!









Identify & Profit from Distressed Investing

Free Report: Distressed Investing

Turnaround Investing Blog

Turnaround Investing Blog

Return of Volatility? No, Return of "Normal"

Sizeable market moves can increase the temptation to sell on downdrafts and buy on upswings; however, we strongly advise against attempting to do that. The chances of getting out at the right time and then back in again before the market rebounds are extremely slim. 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."