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, this company's 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

Amazon = US GDP 1970

Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached. Read More.

EV/EBITDA: What Is It & Why Are We Using It More?

In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple.  We thought it might be useful to describe this measure and why we like it.

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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."