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The Turnaround Letter in the News
As a turnaround investment authority, George Putnam, III first became involved with distressed securities as a lawyer in the late 1970s. Seeing the inefficient niche in which bankruptcies and turnarounds were presented and researched, he founded New Generation Research, Inc. and began publishing The Turnaround Letter in 1986.
Since then, Putnam has frequently been quoted in the full range of media sources—including Fox Business, Forbes, Barron's, The Wall Street Journal, New York Times, The Fiscal Times, MarketWatch and USA Today, just to name a few. The links below offer a brief overview of George’s most recent media citations and accolades:
In a guest appearance on the podcast Money Life, hosted by Chuck Jaffe, George Putnam joined the show for their "Market Call" segment. During the conversation, he spoke about his strategies and philosophy in turnaround investing - what he looks for in both individual stocks and whole sectors, and he also highlighted of some of his stock picks that appear poised for turnarounds. Later in the show, George also weighed in on listener-submitted stock picks during a segment called "Hold 'Em or Fold 'Em".
In an opinion piece on the rise of long-term "rifle shot" investment strategies, MarketWatch's Mark Hulbert highlights George Putnam's Turnaround Letter as on of his top-performing investment newsletters, citing our portfolio-average of 25.7% gains in the first half of 2018. Hulbert applauds George's farsight, adding, "The underlying premise of his approach is that such stocks are shunned by investors who can’t look past the companies’ dismal past performance. Sometimes the result is a hidden gem."
In an opinion piece on the resurgence of oil and gas corporation BP after the disastrous oil spill in 2010, MarketWatch's Mark Hulbert referenced The Turnaround Letter, calling back to the June 2010 issue (the same month as the oil spill). In the issue, our Editor George Putnam discussed the stock market ramifications of the catastrophe. Hulbert continues, "It should be little surprise that Putnam’s letter has one of the best long-term records of any that I monitor. Over the last 20 years, according to my firm’s performance tracking, the Turnaround Letter has produced a 10.4% annualized return, versus 6.8% for the Wilshire 5000 index’s W5000, -0.17% total return."
Financial Exchange Radio Show interviewed The Turnaround Letter's Associate Editor Bruce Kaser to highlight two of our latest stock picks: an entertainment industry icon and a post-bankruptcy oil & gas production company. The hosts' reaction is a classic example of the way many mainstream investors jump to conclusions and dismiss stocks that could ultimately reveal themselves to be hidden gems.
MoneyShow.com article entitled "Two Turnarounds with New CEOs," written by George Putnam, highlights the effects that new CEOs can have on companies in distress--and how that corresponds to market-beating investing strategies. George writes, "Investing when an outsider arrives as the new CEO of a struggling can be quite rewarding." The article goes on to list a few current CEO changes to keep an eye on.
BottomLine Personal notes that, as a result of federal tax cuts, many companies are likely to be takeover targets in the coming year--offering investors a potentially healthy "stock price surge." This "Shrewd Investor" write up details two likely acquisition candidates that share three appealing traits: market share dominance, solid balance sheets and value stock pricing.
TheStreet recently featured three timely value investing opportunities from the movie theater industry, spotlighting The Turnaround Letter's recent AMC Entertainment purchase recommendation. The article emphasizes that--despite competitive pressure--respected financial pundits are bullish on this battered industry. Putnam notes, "With no significant debt maturities until 2022, the company has considerable runway. At a low 7.2x estimated 2017 EBITDA and with a generous 5.6% dividend, AMC's shares could provide strong returns to investors."
This Forbes write-up followed up on MoneyShow.com's 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."
MarketWatch's Michael Brush added a new twist to an old adage, suggesting, "You don't always get what you pay for. But you don't often get much more." Emphasizing the current "substance light" genre of Web-based content and a "hollowed-out financial press corps," Brush notes that Putnam's Turnaround Letter is among the few voices offering high-quality, independent stock research--ranking at the top among his five favorite "investor-writers…worth following." The article touches on George's contrarian market outlook and highlights two of The Turnaround Letter's recent purchase recommendations.
Investopedia profiled The Turnaround Letter's recent bargain-hunting year-end bounce stock picks. It’s that time of the year--when savvy investors look for year-end discounts in the stock market. Around this season, even The Turnaround Letter can be tempted to briefly set aside its intense focus on long-term business fundamentals and underlying valuations when artificial selling pressure, created by investors tossing their losers, offers some unusual short-term stock profit opportunities. This article details ten stocks that represent a diverse roster of promising bounce candidates.
MoneyShow.com focused this article on two of The Turnaround Letter's recently featured value stock opportunities within in the packaged food industry, noting that both CPB and SJM "...have impressive financial traits: strong balance sheets, prodigious cash flows and generous payouts to shareholders." The article details the positive turnaround attributes that George sees in each stock and concludes, "With its family’s name on every label and family members sitting in the Chair and CEO seats, J.M. Smucker has a real incentive to return the stock to its former performance."
MoneyLife Radio: Market Call
MoneyLife Radio's Chuck Jaffe interviews George for insight into the "specific methodology" and "discipline" behind his contrarian investing approach. Putnam discusses the troubled energy and retail sectors--with particular emphasis on what separates Macy's from Sears: M has solid assets, management and cash flow while "we're not quite sure" how SHLD can solve its mounting challenges. George emphasizes the need for investor patience in a turnaround situation, pointing out that a solid turnaround stock prospect "needs new management, assets, improved cash flow or something else that will eventually allow the stock to level off and then rebound."
BottomLine Personal: When "Activists" Boost Stocks
BottomLine Personal explores the significant role "activist" investors can play in a successful turnaround--"prodding companies to make much needed strategic changes that help boost prices for all shareholders." The article notes that small investors can benefit from seeking out shares in companies that are targeted by effective activist investors and goes on to name two related value stock opportunities.
Barron's recently discussed the trading strategy of buying the worst stocks of the calendar year with the expectation that they will rebound sharply the beginning of the next year. "10 Beaten-Down Stocks Set to Bounce Back in 2018" features Putnam, who describes some of methods and reasons behind the technique. Barron's explains, "To find a prince, you sometimes have to kiss a lot of toads--especially as we approach the end of the year….George Putnam...is one of the select few advisors I follow who has beaten the stock market on a real-world basis over the long term.
Investopedia: At the Movies: 6 Top Theater Turnarounds
Investopedia recognizes George's tried and true investing philosophy: "Investors in turnarounds must be patient, as these situations generally occur over a long-time frame." "At the Movies: 6 Top Theater Turnarounds" takes a closer look at the movie industry and details six of The Turnaround Letter's top stock picks from this sector.
Forbes: 5 Stock Buys at Big Discounts
Forbes notes, "With major indexes trading at or near all-time highs, it's much harder than ever to find bargain stocks. And by bargain, we mean quality companies at a reasonable price. As Warren Buffett famously pointed out 'price is what you pay, value is what you get.'" Forbes goes on to detail five value stocks selected by The Turnaround Letter. Each of the stock picks has minimum $1 bb market caps and significant declines over 52-week highs--adding up to "real value that the market appears to be missing." Click here to read the related PDF report for "5 Stock Buys At Big Discounts."
Equities.com highlights Putnam's July 2016 Purchase Recommendation: Macy's (M). The article notes Putnam's assertion, "Macy's shares remain near multi-year lows despite the company's reasonably decent 2nd quarter 2017 results backed by fresh and more aggressive leadership….Valuation at 4.4x this year's estimated EBITDA, which understates the value of much of Macy's real estate, assumes an overly grim outlook for the company." Putnam believes this retailer is showing all the signs of a successful turnaround, and the stock remains bargain priced with an added bonus: Macy's generous dividend yield rewards patient investors.
MoneyShow.com: 5 REITs with Turnaround Potential
MoneyShow.com notes Putnam's assertion that turnaround investors frequently overlook REITs. As The Turnaround Letter points out, although these situations often involve the slow process of selling illiquid real estate and can take some time, patient investors can find substantial gains--and attractive dividends. The article names five REITs with attractive stock profit potential.
Forbes "Intelligent Investing" feature highlights two struggling retailers recognized by The Turnaround Letter for their value investing appeal. "Rich Dividends From 2 Retailers On The Mend" notes, "…[D]on’t count out the ability of incumbent giants to adapt to the new Millennial-focused era." The article goes on to discuss Putnam's assessment of the signs of an encouraging turnaround taking place at both Gap (NYSE: GPS) and Kohls (NYSE: KSS)--and their impressive dividend yields of 3.3% and 5%, respectively.
BottomLine Personal: Retail & Energy Stocks for 2017
BottomLine Personal points out that contrarian investors might want to consider "bottom-fishing" stock picks from the depths of the battered retail and energy industries. The article continues with advice from a "master" of bottom-fishing: George Putnam. BottomLine Personal goes on to detail several of Putnam's current favorites and notes, "[T]urnaround-stock specialist George Putnam searched for potential rebounds among some of the most hated corners of the energy market such as coal mining and oil-drilling equipment."
Equities.com: A Six-Pack of REIT Turnarounds
Equities.com notes The Turnaround Letter's assertion that REITs have "broadly produced lackluster returns over the past 12 months"--naming several contributing factors. Putnam remarks, "As turnaround investors, we approach REITs differently. Rather than focusing on a particular segment of the real estate market, we look for individual REITs that have been neglected by investors but have solid value--that should prevail regardless of the overall market." The article goes on to detail six REIT value investing opportunities.
Bull & Bear Financial Report features six of George's value stock picks from the struggling restaurant sector. Putnam notes why these featured stocks might be poised for a turnaround: "They have well-known franchises, reasonable balance sheets and attractive valuations. Several have new management teams. Macro headwinds like rising wage costs and aggressive competition from grocery stores may be offset by steady economic growth."
MoneyLife Radio's Chuck Jaffe interviews George to learn more about what makes an ideal turnaround investing opportunity. Putnam emphasizes the importance of a core business, strong brand recognition, competent turnaround management and a healthy balance sheet. The interview continues with a quick discussion on retail and energy sector trends—and a few winners and losers for each. Jaffe also leads George through a spirited round of "Hold 'Em or Fold 'Em" stock pick recommendations.
MarketWatch's Michael Brush has some advice for investors: "Own out-of-favor stocks held by active funds when they start beating indices again." Pointing out the difficulties currently faced by fund managers, the article cites George's observation that this "dynamic sets up a clever way to place a contrarian bet against the ETF boom." Brush cites three of George's recent stock picks and touts The Turnaround Letter's straightforward investing approach.
In this MarketWrap interview with Moe Ansari, George details the potential stock profit advantages to be found in "ESG"--Environmental, Social and Governance--investing. Once dismissed as irrelevant or even a detractor from good investment returns, there is a growing body of evidence that shows this ESG approach actually contributes to better returns over the long run. Putnam explains, "Management that is focused on these ESG issues and tries to do the right thing is likely do the right thing by shareholders over the long term, as well."
MarketWatch notes, "Value is hot again....For the first 11 months of the year, ...the average value stock did 17.0% better than the average growth stock. That’s better than any prior calendar year performance since 2001. Mark
Hulbert goes on to cite George's Turnaround Letter as a top-performer with "classic value-oriented strategies."
Kiplinger points out that despite the post-election stock market surge, not all stocks have benefited from the uptick. Kiplinger notes, "More than 100 issues in the S&P 500 have fallen in price this year, including dozens that have slumped by more than 10%....Yet these stocks won’t all stay in the dumps forever. Some will mount a comeback in 2017, making it an opportune time to try to identify the best candidates." Quoting George Putnam, Kiplinger details five value investing opportunities for the new year.
Bottom Line Personal: "Turnaround Stocks"
Bottom Line Personal tapped George's value stock expertise, noting, "At a time when the stock market has been setting records, are there any bargains left? There are--in companies that have run into big problems but are ripe for a turnaround in both their businesses and their stock prices."
Kiplinger sought out Putnam's long-term buy-and-hold investing advice. Daren Fonda notes: "If you're going to bottom-fish, be patient. Wait for the stock to settle after bad news hits, and then buy shares gradually over time (in case more bad news trickles in). Home in on companies with durable advantages, such as a strong brand or exceptionally low costs. Steer clear of firms with inscrutable accounting. And look for companies that pay dividends and are likely to maintain the payments through a crisis. Even if the shares don't budge for ages, at least you can get paid to wait for a rebound, says George Putnam, editor of TheTurnaround Letter, a newsletter that focuses on out-of-favor stocks."
MoneyShow.com: "Retail Turnaround Trio"
MoneyShow.com interviewed George to learn more about his favorite value stock picks for today's market. This Daily Guru feature highlights three of The Turnaround Letter's recently-profiled retailers: JWN, TIF and SPLS. Putnam notes, "Well the retailing sector is undergoing very fundamental change as people move away from the bricks and mortar mall doors to buying more and more online but that's not going to wipe out all of the old-fashioned retailers."
MarketWatch's Michael Brush recently profiled several solid year-end bounce stock picks. In "Year-end Selling Has Made These Stocks Screaming Bargains," Brush notes, "This year, tax-loss selling is particularly pronounced and probably creating more bargains than normal because of an unusual dynamic." Brush emphasizes, "Putnam is worth listening to because his stock letter performs extremely well. Since 2000, its picks are up 10.8% a year, compared to 4.5% for the Wilshire 5000 Total Market Index W5000, -0.44% according to Hulbert Financial Digest."
Barron's: "Candidates for the January Effect"
Barron's Emily Bary cited George's top yearend bounce stock picks and investing advice. In "Candidates for the January Effect," Emily Bary reminds investors, "In the new year, consider giving the old year’s losers another shot, at least for a while. Many big stocks are down this year, which could create an opportunity for a January bounce." She goes on to name several stocks discussed in the Dec. '15 Turnaround Letter and quotes George: "Ultimately, longer-term fundamentals will drive the prices of these stocks, but you can often make good money from the yearend bounce pattern."
MarketWatch's Mark Hulbert tapped Putnam's expertise to determine the true fate of the junk-bond market—telling readers what recent indicators likely mean for future stock market prospects. Commenting on the rapid growth of high-yield exchange traded funds, Putnam noted, "They have become the investment vehicle of choice for short-term investors….Those investors tend to be trend followers and, therefore, are just the opposite of being contrarian."
Kiplinger tapped George Putnam's turnaround investing expertise in this value stocks write-up. Kathy Kristof notes: "Value investors love beaten-down stocks because the shares can quickly post outsized gains once the world discovers that the companies have turned the corner." In the same article, George asserts, “You have to have a strong stomach and be willing to go against the crowd. If you wait until the recovery is established, everyone piles in and you only get a fraction of the potential profit.”
Hulbert Financial Digest echoed George's stock market advice emphasizing a calm, patient approach to long-term returns. "Preparing for the Coming Bear Market" highlights top-performing investment newsletters since 2000's bull market peak. Mark Hulbert praises The Turnaround Letter's market-beating results, noting, "These top performers are not prone to panic, in other words."
Mark Hulbert boldly proclaimed: "Warren Buffett is not the only investor who publishes a must-read newsletter." This MarketWatch article emphasizes that several have outperformed Berkshire Hathaway--with the added bonus of not making "you wait a whole year, as Buffett does, to get updated insights." Berkshire Hathaway's15-year annualized growth rate is 9.4%. Hulbert notes that The Turnaround Letter easily "bettered that return" with its 12.1%. Long story short, MarketWatch reminds investors: "...you don't need to look only to Buffett for ways to put that approach into practice."
MarketWatch warned investors to be cautious of short term performance ratings when picking an adviser--instead advocating a 15-year track record that "encompasses two powerful bull markets as well as the bursting of the Internet bubble and the Great Recession of 2008-2009." Mark Hulbert goes on to praise The Turnaround Letter's investing methodology and 15 year stock profit returns.
The Fiscal Times recognized The Turnaround Letter's market-beating results and buy and hold investing strategy. Michael Brush notes, "Before 2014 comes to a close, take a moment to meet some Rodney Dangerfields of the stock market--because it might boost your returns in 2015. You won't see these stock newsletter writers ranting on your favorite TV show. But they merit your attention more than the talking heads."
Bottom Line/Personal interviewed George and proclaimed, "...Putnam is able to sift through the debris and look for reasons to believe that the company will not just survive but thrive." In this write-up, George reveals his favorite contrarian stock picks with maximum profit potential.
Dick Davis’ Investment Digest recently announced its “best performer” for 2013: MGIC Investment (MTG), “which gained 194.08%—was chosen by George Putnam III of The Turnaround Letter." The report also identifies and details Putnam’s “single favorite investment idea" for 2014.
This Wall Street Journal/Market Watch piece warns investors that "following last year's stock market leaders is a risky bet" and praises The Turnaround Letter's first place 15-year performance returns. Mark Hulbert writes, "[The Turnaround Letter's] "model portfolios have produced an average annualized return of 14.2% over the past 15 years, versus 4.7% annualized for the S&P 500, assuming dividends were reinvested."
Kiplinger Personal Finance tapped Putnam’s contrarian investing expertise and shared the following Turnaround Letter stock picks with Kiplinger's readers: US Air, (LCC), Chiquita (CQB), MGIC (MTG) & Rite Aid (RAD).
Fox Business Interview
Fox Business brought George back for a “victory lap”—praising his Hewlett Packard and Best Buy picks and asking for future recommendations. George details the promising turnaround investing opportunities from mortgage insurer stocks named in the February 2013 Turnaround Letter.
Fox Business Interview
Fox Business tapped George’s investing expertise, talking about the fiscal cliff, year-end stock picks and--primarily--the turnaround potential for The Turnaround Letter’s June 2012 purchase recommendation: Hewlett Packard (HPQ).
In light of Jack Hough’s Wall Street Journal article “Betting on a Turnaround,” George was asked to speak with MarketWrap about the benefits of a turnaround investing strategy in today’s “Aging Bull Market.”