Stocks That Pay Dividends

Stock that pay dividends


Unloved, overlooked and down significantly from it's (2014!) high. It may be time to dial this number.

Purchase Recommendation - December 2018

This global services company has fallen out of favor as investors worry about its uninspiring revenue and EBITDA growth, as well as its history of overpaying for otherwise strategically smart acquisitions. Its large net debt balance and ability to sustain its dividend also weighs on investors. We think the company’s improvement plan under its new CEO, its solid and improving EBITDA and large cash hoard, along with its low valuation, offers investors the potential for significant upside.
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This article highlights a group of Telecom companies that offer interesting value opportunities.

Telecom Stocks - Time to Dial Them Up?

Telecom service companies seem to be out of favor quite often. Nevertheless, some telecom companies have been quite successful, and their stocks can soar when investors eventually take notice. After surveying the shifting telecom landscape, we think there are a number of interesting value opportunities in the group.
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This Swiss-based, large-cap manufacturing company is this month's stock pick.

Purchase Recommendation - April 2018

Despite the impressive new management, these shares fell sharply. This value stock's shares trade at a relatively modest valuation of 8x current year EBITDA. Although waiting for a five-year plan to unfold may seem as dull as watching cement dry, the shares pay an appealing 3.7% yield and should provide rock solid gains when the recovery is completed.
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This article names a diverse group of six REITs that have fallen out of favor.

Is It Time To Check Into REITs?

As the market worries about overpriced technology and industrial stocks, one group that has already corrected into undervalued territory is real estate investment trusts, or REITs. So far this year, the S&P500 Real Estate sector has declined over 7%, with a three-year return of just over zero compared to the broad market's return of 30% over the same period. Once largely ignored, REITs earned their own sector classification within the S&P500 Index in 2016, significantly raising their profile among investors.
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These value investing opportunities could produce considerable stock profit.

Bargains In Low-Priced Stocks

It has become fashionable in the stock market for companies to have high per-share prices. Notable examples include Amazon ($1,497), Alphabet ($1,005) and Blackrock ($541)--and, of course, Berkshire Hathaway Class A at $300,240. Companies with high per-share prices generally have successful and growing businesses and have chosen not to split their shares. What about companies whose per-share prices are at the other end of the spectrum, around $10 or less? This article details six value stock companies that fit the bill.
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DSW: 4Q17 Earnings Show Turnaround Gaining Traction

The turnaround at shoe retailer DSW (NYSE: DSW) showed clear traction in the fourth quarter of fiscal 2017, with management providing guidance for more improvements in the coming fiscal year. DSW increased the dividend by 25%. Although much work in revenue growth and margin improvement are still needed for DSW shares to reach our $33 price target, we are encouraged by the progress. DSW sells for a bargain 5.5x EBITDA and offers a 4.6% yield.
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We look at gold-mining companies differently. 

Good As Gold? Finding Value In Major Gold Mining Companies

This article names five appealing value stocks. They are all major, well-run mining companies whose shares or ADRs trade on the New York Stock Exchange, with generally beaten-down valuations and prices. They provide potentially more sparkle: If the price of gold does begin to go up, the stocks of gold mining companies generally rise faster than the commodity itself.
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Crocs has been a strong performer, but from the nadir it took several years and a few new CEO's to finally get the turnaround right.

New CEOs & Turnarounds: Patience Often Required

Investing when an outsider arrives as the new CEO of a struggling company can be quite rewarding. It's one of our favorite catalysts--few changes bring as much potential improvement as the fresh perspective and energy that new leadership provides. However, bringing in an outsider isn't necessarily a sure path to an immediate turnaround. This article details four turnaround situations where a new CEO's arrival hasn't yet produced much in the way of stock performance, but which have promising prospects once the company moves beyond transitional issues.
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Mosaic: Strong 4Q17 Results and Improving Outlook

The outlook for agriculture commodity producer Mosaic Company (NYSE: MOS) is driven largely by commodity prices, and to a lesser extent by profit improvements at the Vale Fertilizante operation it recently acquired. Improving pricing in both phosphates and potash along with its likely strong synergies with Vale Fertilizante are providing a much better outlook for the company in 2018.
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Freeport McMoran--Better 4Q17 Earnings, Reinstates Dividend

Copper and gold commodity producer Freeport-McMoran (NYSE: FCX) reported stronger 4Q17 revenues and earnings due to stronger copper prices and higher operating efficiency. Later, on February 6, the company reinstated its $0.05/share quarterly dividend. The outcome of negotiations over the Grasberg mine in Indonesia remains an unknown although Freeport's CEO stated that he believes a "fair price" will be paid for their stake.
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Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

Is there value in bankrupt PG&E’s stock?

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.

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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.

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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."