The Turnaround Letter

October 2017

Volume: 32
Edition: 4

Stock Pick & Stock Sales

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The turnaround’s complexity means that it won’t be linear, and investors should expect it to take a few years.

Purchase Recommendation - October 2017

Investors’ lack of patience with this stock pick reminds us of the chef who gets frustrated that his cake, which requires an hour to properly bake, looks awful after 20 minutes. This mid-cap's problems are deep, so fixing them will take some time. We look at this investor impatience as providing an opportunity to buy into the turnaround at an even better price, and despite the market’s pessimistic view new management is making progress already.
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This stock moved up pretty steadily over the past year.

Sale Recommendation - October 2017

We are recommending Turnaround Letter readers sell this mid-cap to reflect full valuation and completion of the turnaround.
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Turnaround Investing Articles

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Here are our top-five bargain-bin stocks.

Stocks On "Sale" At Discounts Of Up To 70% From Their Highs

As Warren Buffett points out, “price is what you pay; value is what you get.” With that thought in mind, we sifted through a list of stocks with market caps over $1 billion that are selling at huge discounts to their 52-week highs. We found a handful that have real value that the market appears to be missing. 
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Better showing ahead for these six theater stocks?

Secular vs. Cyclical: What Movie Theater Stocks Are Showing

The movie theater industry presents a very timely example of the cyclical versus secular dilemma. The stocks of the theater operators have been among the worst performers this year. While the broad market has gained nearly 13%, many stocks in the theater industry have declined by 20-50%. Are the problems secular or cyclical?  The right diagnosis could mean a huge difference in returns.
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Turnaround News & Updates

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Buy limit raised for two stocks and reduced for one--yet another moved to hold.

News Notes & Updates - October 2017

Turnaround Letter readers should note these four important updates to our current portfolio.
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Identify & Profit from Distressed Investing

Free Report: Distressed Investing

Turnaround Investing Blog

Turnaround Investing Blog

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."