This company is a consumer products conglomerate with a diverse portfolio of widely-recognized brands. The company’s growth-by-acquisition strategy has succeeded in making them a bigger company. But it hasn’t made it more valuable to shareholders.
Like many stocks in the energy sector, master limited partnerships, or MLPs, remain out of favor. Fundamentally, strong energy demand along with healthy production growth means increasing volumes of crude oil and natural gas flowing through pipelines and a brighter future for many MLPs. Listed below are five MLPs that look particularly interesting to us right now.
The stocks discussed in this article have all fallen 70% or more from their five-year highs, and they all have one or more catalysts, while also having enough financial runway to allow a recovery to unfold.
At best, the broad stock market’s 15.8% drop since its peak only three months ago on September 20 has been disconcerting. The deeper 23% plunge in small cap stocks, as measured by the Russell 2000 index: startling. For the weakest 9% of S&P500 stocks – often those with some type of unfavorable macro exposure – their average loss of 40% in such a brief time has been simply jaw-dropping.
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.
This Forbeswrite-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."