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2013 Stock Picks: Small Caps with Big Rebound Potential

 

Want to know what George Putnam is recommending to readers of his Turnaround Letter? The articles previewed below offer you a sneak peak of the quality content and sound investment guidance you can trust. To view his most recent recommendations click here.

 

 

2013 Stock Picks: Small Caps with Big Rebound Potential

While much of the stock market is quite efficient--meaning information is well distributed, and so it is hard to get an edge and outperform--there are certain niches that are less efficient. As we’ve often said, turnaround stocks represent one of those inefficient niches because they require a mindset that most mainstream analysts don’t have. Small capitalization stocks can also be less efficient. Their small size and lower levels of trading liquidity make them impractical for large investment funds to own, and so there are fewer analysts following them.

If you combine these two sources of inefficiency, it stands to reason that small-cap turnaround stocks should be particularly inefficiently priced. Since inefficiency usually equates to abnormally high return potential, that makes these stocks particularly interesting. 

The January 2013 issue of The Turnaround Letter details eight 2013 stock picks culled from the worst performers in the S&P SmallCap 600 this past year. These turnaround investment opportunities all offer solid businesses, decent balance sheets and good rebound potential. Access the full subscriber-restricted version now.

 

 

Read your free preview of The Turnaround Letter's most recent recommendations now!

 

 


 

 

 

 


 

 

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Turnaround Investing Philosophy: 32 Years Later, Some Things Never Change

Recently I was asked how my investing perspective changed over the 32 years of publishing The Turnaround Letter. It's a fascinating question because change is constant, and often beneficial (although that's not a given) in the business world. If change is the norm, can investing principles stay constant? I firmly believe that they can. 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.

Read More.

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."