Only two days after joining the Dow Jones Industrial Average, Walgreens Boots Alliance fell 10%, as Amazon is entering the pharmacy business with its PillPack acquisition. This might not have been the effect that the S&P Index Committee had in mind when it chose Walgreens to better measure the economy and the stock market. Indices are seen as representing “the market” but they are baskets of individual stocks with all the risks these stocks bring.
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.
Movie theater company AMC Entertainment (NYSE: AMC) reported 1Q18 results that had many moving parts, making a clean comparison with a year ago nearly impossible. However, the company appears to be making progress with its initiatives, supported by a rebound in industry box office revenues and a sustained willingness by viewers to pay higher ticket prices and spend more on food and beverages.
Carnival Corporation (NYSE: CCL) launched a new brand called fathom™, defining a new travel category it is calling “social impact travel,” that will offer consumers authentic, meaningful impact travel experiences to work alongside locals as they tackle community needs.
Carnival Corporation (NYSE: CCL) reported first quarter ended February 28, 2015 results that showed revenues rose 2%, a bit better than management’s guidance, and that costs, up 2.4%, were lower than management expected.
Carnival Corporation (NYSE: CCL) signed two strategic memorandums of agreement that will add a total of nine new cruise ships to the company’s industry-leading fleet over a four-year period from 2019 - 2022.
Carnival (NYSE: CCL) announced non-GAAP net income for the full year 2014 of $1.5 billion, or $1.96 diluted EPS, compared to non-GAAP net income of $1.2 billion, or $1.58 diluted EPS, for the prior year.
Carnival (NYSE: CCL) announced non-GAAP net income of $1.2 billion, or $1.58 diluted EPS for the third quarter of 2014 compared to non-GAAP net income for the third quarter of 2013 of $1.1 billion, or $1.38 diluted EPS.
In nearly every case, the shares of a company in bankruptcy become worthless. In very rare cases, however, they can become great investments. W.R. Grace (NYSE:GRA) shares produced a 75-fold return, as an example. With California utility PG&E (NYSE:PCG) now in bankruptcy, the range of possible outcomes for its equity is wide.
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."