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Looking for Technology Turnarounds: Opportunity in Dividend Payers?

Technology stocks have been weak in recent weeks. Even the two tech darlings, Apple and Google, have fallen more than 10% from their September highs. Is this a good time to buy and lock in tech stock profit?

Maybe. Technology stocks are notoriously volatile. One minute investors love them; the next minute they hate them. If you are interested in this space, we recommend avoiding the high-flyers. Rather, we suggest two more contrarian investing approaches. One approach, is to look at recent (and some not-so-recent) high-flyers that have come down to earth.


Our preferred approach is to focus on well-established tech companies that pay solid dividends. They may be less sexy than the latest darlings, but their stockholders get paid even if the sector remains in the doldrums for some time. In the complete version of this article, available only to Turnaround Letter subscribers, we discuss eight companies that all have solid market positions and their stocks yield more than three percent.


Yes, we know Apple pays a dividend. But we are not willing to recommend it around $600 a share because we think the stock will be in for a bumpy ride if the company can’t keep coming up with blockbuster products. (For the record, we did like it once. We recommended Apple stock in November 2002 at 7.80 per share, split adjusted. Of course we sold it too soon, but the purchase recommendation was still a good call.) This full article--and George's 8 related stock pick recommendations--are available exclusively to subscribers


Read Part 2 of The Turnround Letter's Technology Turnarounds feature: "Former Internet High-Flyers" now.



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Return of Volatility? No, Return of "Normal"

Sizeable market moves can increase the temptation to sell on downdrafts and buy on upswings; however, we strongly advise against attempting to do that. The chances of getting out at the right time and then back in again before the market rebounds are extremely slim. Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.


Value Investing


While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

Turnaround Letter Stock Pick Named Top Performer of 2017


stock market advicex


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."