The Turnaround Letter

May 2018

Volume: 32
Edition: 11

Stock Pick & Stock Sales

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This small-cap home-building company is this month's stock pick.

Purchase Recommendation - May 2018

A recent debt refinancing should provide considerable financial flexibility, but it involves an intentional, technical default that has rattled shareholders and threatens a potentially costly legal entanglement. As a still quite leveraged company tied to the strength of the housing market, Hovnanian shares carry significant risks, but we think those risks are outweighed by the upside potential in the stock.
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Stock moved to sell recommendation after ongoing prosperity.

Sale Recommendation - May 2018

This metals and mining company has had an impressive turnaround, and we recommend the sale of its shares.
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Turnaround Investing Articles

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This article highlights a group of Telecom companies that offer interesting value opportunities.

Telecom Stocks - Time to Dial Them Up?

Telecom service companies seem to be out of favor quite often. Nevertheless, some telecom companies have been quite successful, and their stocks can soar when investors eventually take notice. After surveying the shifting telecom landscape, we think there are a number of interesting value opportunities in the group.
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These companies with high surplus cash could be solid value-stock picks for investors

Value In Cash-Laden Companies

With cash balances greater than their debt, these companies have the financial flexibility to weather the challenges without great concern about principal or interest payments. And once the storm clouds clear, shareholders could see a sizable profit.
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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."