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Bruce Kaser

Chief Analyst, Cabot Turnaround Letter and Cabot Undervalued Stocks Advisor

Bruce Kaser has more than 25 years of value investing experience in managing institutional portfolios, mutual funds and private client accounts. He has led two successful investment platform turnarounds, co-founded an investment management firm, and was principal of a $3 billion (AUM) employee-owned investment management company.

Previously, he led the event-driven small/midcap strategy for Ironwood Investment Management and was Senior Portfolio Manager with RBC Global Asset Management where he co-managed the $1 billion value/core equity platform for over a decade. He earned his MBA degree in finance and international business from the University of Chicago and earned a Bachelor of Science in finance, with honors, from Miami University (Ohio).

From this author
This note includes the Catalyst Report, a summary of the December edition of the Cabot Turnaround Letter, which was published on Wednesday, and earnings from Duluth Holdings (DLTH).
With market uncertainty heading into next year, it’s important to remind ourselves what’s at the core of value investing and why it’s a good option in 2023.
Another event with consequences is the earnings report for recommended name Big Lots (BIG), scheduled for pre-market release on December 1.
Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the December 2022 issue.

While investment losses are everywhere this year, we highlight two ways to harvest these losses and discuss seven stocks that have strong appeal as year-end bounce trades.

We also highlight four attractive stocks held by highly-regarded long-term value investment funds that we found in our analysis of the recent 13F regulatory filings.

Our feature recommendation this month is theme park operator Six Flags Entertainment (SIX). This company is aggressively working to improve its profit structure under a completely new leadership team but the turnaround is taking longer than investors would prefer, leaving its shares overly depressed. For patient long-term investors, the shares offer an attractive, asymmetric potential return.
Each era has a cult stock or investment that becomes a symbol of the excess of the era. Applying these value metrics can help you avoid them.
Last week, we rolled our valuation and earnings estimate table forward by a year, dropping the 2022 estimates and adding the 2024 estimates.
Moving Shell plc (SHEL) from Buy to Sell
Macy’s (M) – With a capable new CEO since February 2018, Macy’s is aggressively overhauling its store base, cost structure and e-commerce strategy to adapt to the secular shift away from mall-based stores. Macy’s acceleration of its overhaul shows considerable promise.
Following our demoralized and never-changing, four-word question of “are we there yet” came worthless responses like “soon enough,” or “sometime later,” “we’re getting closer.”
This week’s update includes commentary on earnings from Adient (ADNT), Berkshire Hathaway (BRK/B), Brookfield Reinsurance (BAMR), Elanco Animal Health (ELAN), TreeHouse Foods (THS), Viatris (VTRS) and ZimVie (ZIMV).
Value investors have a wide variety of tools at their disposal, and estimate revisions are one way they can avoid value traps.
Well over two decades ago, I oversaw the investment strategy for a large branch office of a major investment management firm. Our clients were flush with gains from a decade of tech mania – and highly reluctant to shift from their winning strategy. A major challenge was convincing clients to stay invested in stocks but step aside from high-flying dot-com stocks.
This week’s update includes commentary on earnings from Conduent (CNDT), ESAB (ESAB), Gannett (GCI), Goodyear Tire & Rubber (GT), Holcim (HCMLY), Ironwood Pharmaceuticals (IRWD), Kaman (KAMN), Molson Coors (TAP), Organon (OGN), Volkswagen (VWAGY), Warner Bros Discovery (WBD) and Western Union (WU).

Seatmaker Adient (ADNT) reported this morning with encouraging results – we’ll include more detailed commentary next week.

Next week, TreeHouse Foods (THS), Viatris (VTRS), Elanco Animal Health (ELAN), ZimVie (ZIMV), Brookfield Re (BAMR) and Toshiba (TOSYY) report earnings.
Thank you for subscribing to the Cabot Undervalued Stocks Advisor. We hope you enjoy reading the November 2022 issue.

While sharp declines in hyper-growth tech stocks to below their pre-pandemic prices may seem like the proverbial “end of days” has arrived, the fall-off is more a return to normal following a period of vast excesses.

This note includes the Catalyst Report, a summary of the November edition of the Cabot Turnaround Letter, which was published on Wednesday and earnings updates on 12 recommended companies.

With the arrival of earnings season and perhaps some indications that the 10-year US Treasury yield will peak at around 5%, the broad stock market appears to have found at least momentary stability. Whether this is just another “eye of the storm,” or a true end to the bear market, is unknown and unknowable.
This week, Dow (DOW) and Nokia (NOK) reported earnings. The deluge for our companies starts next week with twelve companies reporting.

Next week, we will publish the November edition of the Cabot Turnaround Letter on Wednesday and our proprietary Catalyst Report on Friday.
So far, earnings season is showing that investor expectations have become overly negative. Results from banks indicate that consumer activity remains healthy even as domestic economic growth stalls.
Macro environment aside, this SaaS stock has all the hallmarks of a future sector leader and is poised to break out when the market turns.
Today’s market is leaving investors wondering how to invest in anything when everything is heading lower. Here’s how to reframe your focus.
For our recommended stocks, earnings season starts next week, led off by Walgreens Boots Alliance (WBA) on Thursday, October 13 and Wells Fargo (WFC) on Friday, October 14. The following week Mattel (MAT) and Nokia (NOK) report earnings. The earnings deluge for our companies starts the following week on October 24.
Instead of hiding in cash, consider shares of this discounted value stock that offers strong fundamentals and a solid yield.
Thank you for subscribing to the Cabot Undervalued Stocks Advisor. We hope you enjoy reading the October 2022 issue.

Following the sharp drop in stocks due to fears of a major policy error, we see an opportunity for subscribers to add to their existing positions in many of our recommended names at very attractive prices.

Is a deep recession likely? Perhaps we are instead experiencing an old-fashioned inventory cycle.

Please feel free to send me your questions and comments. This newsletter is written for you and the best way to get more out of the letter is to let me know what you are looking for.

I’m best reachable at I’ll do my best to respond as quickly as possible.
Value investing has lagged growth investing for decades, but recent declines in the market are good news for contrarian investors.
Want to find return in this flat market? These two activist investor stocks look like prime turnaround candidates.
U.S. Bank is an undervalued bank stock with a conservative balance sheet and reliable earnings, which make it perfect for value investors.
oday, we are moving shares of Lamb Weston Holdings (LW) from Buy to Sell.
VF Corporation may not be a familiar name, but you almost certainly know its brands. Is this beaten-down apparel stock a bargain?
Charlie Munger has been behind many of Warren Buffett’s biggest successes. So when he says these are his 5 favorite stocks, pay attention.
The big banks report Q2 earnings in the next week, so it’s a good time to buy low in some big bank stocks. One in particular stands out.