The Turnaround Letter

December 2017

Volume: 32
Edition: 6

Stock Pick & Stock Sales

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Despite the recent turbulence, we believe that this bargain stock has smoother sailing ahead.

Purchase Recommendation - December 2017

Investors appear to be overly worried about this small-cap value stock opportunity: While cash flow remains robust, the temporary dividend cut provides additional financial flexibility. The Company’s government franchise looks durable, and we believe its expansion strategy makes good strategic sense and provides more opportunities for growth. The Company has many strengths to help it persevere and grow; plus, valuation is a modest 9.6x forward earnings.
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Turnaround Investing Articles

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The Chicago Mercantile Exchange is planning a Bitcoin futures contract.

Bitcoin & Cryptocurrencies--Fad or Future?

We’ve received some questions lately about cryptocurrencies. Their prices have skyrocketed, new ones come out seemingly every week and their legitimacy has been bolstered by Bitcoin’s approval as legal tender in Japan. As for their merits, there are probably as many opinions as there are opinion-givers. So, what exactly are cryptocurrencies? Are they a passing fad or part of the future? We think it is some of both.
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Top 10 Year-End Bounce Stocks

Bargain-Hunting Season Is Here Again

It’s that time of the year--when shoppers search their favorite websites and local shopping malls for holiday savings, and savvy investors look for year-end discounts in the stock market. Here at The Turnaround Letter, even we can be tempted to briefly set aside our intense focus on long-term business fundamentals and underlying valuations when artificial selling pressure, created by investors tossing their losers, offers some unusual short-term opportunities at year-end.
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Turnaround News & Updates

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Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

Tupperware: Not a Good Fit as a Turnaround Stock

At first glance, the shares have decent appeal as a turnaround investment. Looking deeper, however, the fundamentals are not as strong and stable as they appear. Surplus cash flow is tight, a key driver is weakening, it is increasingly reliant on China and has other nagging issues. We don’t see the new CEO as a catalyst for change. Despite the “first glance appeal”, Tupperware isn’t a good fit as a turnaround stock. 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.

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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."