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Freeport-McMoran Reports 1Q18 Results and an Update on Grasberg Mine

Copper mining firm Freeport-McMoran (NYSE: FCX) reported mildly disappointing 1Q18 results. Shares fell sharply, partly due to the earnings but more related to the newly emerged environmental standards that threaten the company’s negotiations with the Indonesian government on the Grasberg mine. We think this will ultimately not impede an agreement.
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Stock moved to sell recommendation after ongoing prosperity.

Sale Recommendation - May 2018

This metals and mining company has had an impressive turnaround, and we recommend the sale of its shares.
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This small-cap home-building company is this month's stock pick.

Purchase Recommendation - May 2018

A recent debt refinancing should provide considerable financial flexibility, but it involves an intentional, technical default that has rattled shareholders and threatens a potentially costly legal entanglement. As a still quite leveraged company tied to the strength of the housing market, this company's shares carry significant risks, but we think those risks are outweighed by the upside potential in the stock.


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GE’s 1Q18 Earnings: OK But Only One Quarter in a Long Turnaround

Industrial conglomerate General Electric (NYSE: GE) reported results ahead of consensus estimates and re-affirmed all of their 2018 guidance. GE Industrial results showed some improvement and GE Capital’s restructuring remains on-track. The new leadership is taking the right actions.
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McDermott Rejects $7/Share Hostile Takeover Offer

Engineering and construction firm McDermott (NYSE: MDR) rejected a $7/share hostile takeover bid from Subsea 7, a well-capitalized Luxembourg offshore energy services company. McDermott reports 1Q18 earnings tomorrow, although they pre-announced results on April 12.
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TriMas Reports Improved 2Q17 Results

Industrial conglomerate TriMas (Nasdaq: TRS) reports that 2Q17 earnings increased by 16% from a year ago, and repaid about $60 million of debt. The turnaround story remains on track.
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Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

Amazon = US GDP 1970

Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached. Read More.

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."