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Turnaround Letter
Out-of-Favor Stocks with Real Value

April 6, 2023

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This holiday-shortened week was relatively light on news, as investors digested signs of a weakening economy in front of what likely will be a fascinating earnings season.

Next Friday, Wells Fargo (WFC) kicks off our earnings season, likely providing at least some insights, along with those provided by several other major banks that report that day, into the banking industry’s current stresses. Our other banks report later, with First Horizon (FHN) on April 18 and Capital One Financial (COF) on April 27.

The deluge starts the week of April 24, with 12 companies reporting.

There were no ratings changes this past week.

Later this month is spring vacation for our kids. This will mean a lighter publication schedule, with brief Friday notes (to include earnings) and no podcast on Friday, April 14 and Friday, April 21. Also, the monthly letter will be pushed back a week to Wednesday, May 3. We’ll continue to monitor the holdings list and provide any Alerts if necessary.

Thursday, April 6, 2023 Subscribers-Only Podcast:

Covering recent news and analysis for our portfolio companies and other topics relevant to value/contrarian investors.

Today’s podcast is about 5 minutes and covers:

  • Comments on other recommended companies
    • Vodafone (VOD) – Received offers of as much as $4 billion for its Spanish telecom operations.
    • Mattel (MAT) – Impressive person, Noreena Hertz, added to the board.
  • Elsewhere in the markets
    • Investment manager Harding Loevner has excellent risk control phrase.
  • Final note
    • Capitalism and evolution: differences described by a surprising source.
Market CapRecommendationSymbolRec.
Price at
Rating and Price Target
Small capGannett CompanyGCIAug 20179.22 1.65 - Buy (9)
Small capDuluth HoldingsDLTHFeb 20208.68 6.24 - Buy (20)
Small capDril-QuipDRQMay 202128.28 28.25 - Buy (44)
Mid capMattelMATMay 201528.43 17.64 - Buy (38)
Mid capAdient plcADNTOct 201839.77 38.36 - Buy (55)
Mid capXerox HoldingsXRXDec 202021.91 14.387.0%Buy (33)
Mid capIronwood PharmaceuticalsIRWDJan 202112.02 10.55 - Buy (19)
Mid capViatrisVTRSFeb 202117.43 9.804.9%Buy (26)
Mid capTreeHouse FoodsTHSOct 202139.43 51.69 - Buy (60)
Mid capKaman CorporationKAMNNov 202137.41 22.113.6%Buy (57)
Mid capThe Western Union Co.WUDec 202116.40 10.878.6%Buy (25)
Mid capBrookfield ReBNREJan 202261.32 31.571.8%Buy (93)
Mid capPolarisPIIFeb 2022105.78 103.46 - Buy (160)
Mid capGoodyear Tire & RubberGTMar 202216.01 10.30 - Buy (24.50)
Mid capM/I HomesMHOMay 202244.28 61.13 - Buy (67)
Mid capJanus Henderson GroupJHGJun 202227.17 25.546.1%Buy (67)
Mid capESAB CorpESABJul 202245.64 55.52 - Buy (68)
Mid capSix Flags EntertainmentSIXDec 202222.60 25.48 - Buy (35)
Mid capKohl’s CorporationKSSMar 202332.43 22.608.8%Buy (50)
Mid capFirst Horizon CorpFHNApr 202316.76 17.633.4%Buy (24)
Large capGeneral ElectricGEJul 2007304.96 94.250.3%Buy (160)
Large capNokia CorporationNOKMar 20158.02 4.901.9%Buy (12)
Large capMacy’sMJul 201633.61 18.353.6%Buy (25)
Large capToshiba CorporationTOSYYNov 201714.49 16.706.2%Buy (28)
Large capHolcim Ltd.HCMLYApr 201810.92 12.173.6%Buy (16)
Large capNewell BrandsNWLJun 201824.78 12.047.6%Buy (39)
Large capVodafone Group plcVODDec 201821.24 11.179.1%Buy (32)
Large capMolson CoorsTAPJul 201954.96 52.502.9%Buy (69)
Large capBerkshire HathawayBRK.BApr 2020183.18 310.39 - HOLD
Large capWells Fargo & CompanyWFCJun 202027.22 36.893.3%Buy (64)
Large capWestern Digital CorporationWDCOct 202038.47 35.06 - Buy (78)
Large capElanco Animal HealthELANApr 202127.85 8.80 - Buy (44)
Large capWalgreens Boots AllianceWBAAug 202146.53 36.125.3%Buy (70)
Large capVolkswagen AGVWAGYAug 202219.76 16.785.5%Buy (70)
Large capWarner Bros DiscoveryWBDSep 202213.13 14.79 - Buy (20)
Large capCapital One FinancialCOFNov 202296.25 94.842.5%Buy (150)
Large capBayer AGBAYRYFeb 202315.41 16.263.3%Buy (24)

Disclosure: The chief analyst of the Cabot Turnaround Letter personally holds shares of every Rated recommendation. The chief analyst may purchase securities discussed in the “Purchase Recommendation” section or sell securities discussed in the “Sell Recommendation” section but not before the fourth day after the recommendation has been emailed to subscribers. However, the chief analyst may purchase or sell securities mentioned in other parts of the Cabot Turnaround Letter at any time.Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at or to our friendly customer support team at Due to the time and space limits we may not be able to cover every topic, but we will work to cover as much as possible or respond by email.

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.