Emerging Markets/International Stocks

Stocks purchased from companies based in countries other than the Unites States

ARTICLES

Fears of 'contagion' may be overblown.

Emerging Markets - An Emerging Opportunity?

An old adage says that when the United States sneezes, the rest of the world catches a cold. Recently, though, as the United States slows modestly after an extended period of Olympian-quality health, emerging market stocks seem to have caught something more like pneumonia. Since its January peak, the widely-watched iShares MSCI Emerging Markets ETF (EEM) has declined 22% while the S&P500 has weakened by about 8%. Over longer periods, the EEM remains unchanged since 2007 while the S&P500 has nearly doubled. Investors haven’t given these markets much credit for a long time.
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Stock markets across the globe were strong in 2017.

2018 Outlook: More Gains Likely But With A Bumpier Ride

With all the humility that any outlook requires, we can make an easy case for more stock market gains in 2018, as nearly every indicator points in this direction: Low interest rates, strengthening economies and more stimulus from the United States’ landmark tax law should foster more earnings growth and provide an overall supportive environment. But as contrarians, we see this view as being widely held and at risk of becoming the “only” view. 
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The Chicago Mercantile Exchange is planning a Bitcoin futures contract.

Bitcoin & Cryptocurrencies--Fad or Future?

We’ve received some questions lately about cryptocurrencies. Their prices have skyrocketed, new ones come out seemingly every week and their legitimacy has been bolstered by Bitcoin’s approval as legal tender in Japan. As for their merits, there are probably as many opinions as there are opinion-givers. So, what exactly are cryptocurrencies? Are they a passing fad or part of the future? We think it is some of both.
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This investment carries risks that are higher than many turnarounds.

Purchase Recommendation - November 2017

What makes this large-cap's stock attractive is the valuation discount of about 50% compared to the post-crisis company. The primary catalyst to closing this discount is the completion of a sale by March 2018. We believe that the gain potential for this value stock pick more than offset the risks.
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Turnarounds Outside the United States: Opportunities Are Everywhere

Excerpted from the April 2017 Issue
Investors here in the United States usually have plenty of turnaround opportunities to invest in; yet change is everywhere, and the trends that affect American-based companies can affect companies all over the globe. Just like many companies here, issues surrounding governance, scandals and complacency can create the need for new leadership and strategic re-positioning no matter where a firm is based. Since many of the foreign stock markets have not been as robust as the U.S. market in recent years, the stocks of some of these international turnarounds may be more compelling values right now compared to their U.S. counterparts.
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Focus on large, well-established companies when prospecting for international turnarounds.

Turnarounds Outside the United States: Opportunities Are Everywhere

Investors here in the United States usually have plenty of turnaround opportunities to invest in; yet change is everywhere, and the trends that affect American-based companies can affect companies all over the globe. Just like many companies here, issues surrounding governance, scandals and complacency can create the need for new leadership and strategic re-positioning no matter where a firm is based. Since many of the foreign stock markets have not been as robust as the U.S. market in recent years, the stocks of some of these international turnarounds may be more compelling values right now compared to their U.S. counterparts.
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With valuations well into the bargain range, these bank stocks look particularly interesting.

European Banks--Not Dead Yet

As a group, concerns about European banks are legitimate: Capital is in short supply, lending profits are narrow due to the negative interest rates, banking and trading fee income is subdued by regulations, tough markets and competition, and costs are too high. The Brexit vote has investors fearing that more extreme adversity, combined with higher cross-border costs, could lead to bank failures that leave investors empty-handed. While these concerns are legitimate, investors often overreact and push stocks down further than is justified by the risks involved.
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Many asset manager stocks have rebounded a bit yet still have great upside potential.

Investment Manager Stocks: Out of Favor Does Not Mean Out of Business

The story on traditional asset managers sounds bleak: “Everyone” is moving to ETFs, index funds or hedge funds; oil-producing countries are withdrawing capital; stock market turmoil is scaring people away from equities while interest rate uncertainty is scaring them away from bonds and more regulations are raising costs. Out of favor, however, doesn’t mean out of business and we think these nine value stocks look particularly interesting.
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Are the "Experts" Usually Wrong? Time to Buy Emerging Markets?

Excerpted from the October 2015 Issue
If you look longer-term--both backwards and forwards--emerging markets look like much more promising investments...and many of the stocks have decent dividend yields to compensate you in case you have to wait a while for a rebound.
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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

 

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."