George Putnam explores private equity firm investing opportunities—especially in light of potential Congressional tax law tweaks. The Turnaround Letter reveals eight solid private equity firm stock picks.
The Turnaround Letter discusses falling interest rates and offers eight purchase opportunities with decent dividends whose stocks have been hurt, to some degree, by the low interest rates. These stock picks all have the potential to perform very well when rates rise.
Despite significant headwinds, many bank stocks continue to trade below book value, and “Bank Stocks: Can’t Get no Respect” offers ten turnaround purchase opportunities from the under-appreciated financial sector.
This headline could easily apply to Goldman Sachs today, as recently described by former employee Greg Smith. Actually, it is the title of a book written in 1940 by a former Wall Street employee named Fred Schwed, Jr. The title refers to a story about person admiring the yachts owned by bankers and brokers who asks where the customers' yachts were. Of course, the customers, who had dutifully followed the advice of the bankers and brokers, couldn’t afford yachts. This just goes to show that there is nothing new about the attitude that Goldman Sachs employees were purported (probably accurately) to have about their clients. It was just as true in 1940--and likely has been forever--as it is now.
In “Mutual Fund Turnarounds: Looking to Rebound from a Tough Year,” The Turnaround Letter looks to mutual funds for a ready-made investment diversification strategy. This article identifies nine mutual funds ripe with turnaround potential.
Most stocks go up and down because the company's business is getting better or worse. Money management companies are a little different: their business gets better or worse because stocks are going up or down. This is because their revenues are based on the amount of assets that they manage, and those assets go up and down with market. [Keeping an eye on ten firms in particular who will float with the rising tide of stock prices…]
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."