The stock market seems to be again underestimating the ability of turnaround management to reverse the seemingly grim outlook of a struggling iconic company--including these recent examples to the contrary: Microsoft, Walmart and McDonald's.
Rio Tinto (NYSE: RIO) reported their production volumes for the December quarter on January 19th. The company routinely reports production a few weeks after quarter-end, with earnings scheduled to be reported on February 11th.
Royal Dutch Shell (NYSE: RDS.A) announced the poll result from today’s General Meeting held at the Circustheater, Circusstraat 4, 2586 CW, The Hague, The Netherlands. Shell shareholders expressed their support for the recommended combination with BG Group plc (“BG”) by carrying the resolution to approve and implement the transaction.
Shell (NYSE: RDS.A), which opened its first hydrogen fuel station in Germany in 2011, has signed a declaration of intent with its H2 Mobility Germany joint venture partners and Germany’s federal transport minister, Alexander Dobrindt.
BP (NYSE: BP) reported results for the second quarter of 2015. Underlying replacement cost profit for the quarter was $1.3 billion, compared with $2.6 billion for the previous quarter and $3.6 billion for the second quarter of 2014.
At best, the broad stock market’s 15.8% drop since its peak only three months ago on September 20 has been disconcerting. The deeper 23% plunge in small cap stocks, as measured by the Russell 2000 index: startling. For the weakest 9% of S&P500 stocks – often those with some type of unfavorable macro exposure – their average loss of 40% in such a brief time has been simply jaw-dropping.
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.
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."