This week there were no earnings reports, so most of the note and podcast cover relevant news on our recommended companies.
Earlier this week we moved shares of The Kraft Heinz Company (KHC) from Buy to Sell. As the shares were approaching our price target and as part of our effort to reduce the number of names on our recommended list to focus only on the most attractive turnarounds, the shares no longer belong in the turnaround portfolio. Since our initial recommendation in June 2019, KHC shares have generated a 60% total return.
Next week, we will be publishing the monthly edition of the Cabot Turnaround Letter. As is our tradition, the January edition will include our Top 5 stocks for the upcoming year, our stock market review and outlook, and our bankruptcy and high-yield bond outlook.
Next Friday, we will publish the Catalyst Report and Friday note, but will not be including a podcast due to our travel schedule.
Friday, December 23, 2022 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 7 minutes and covers:
- Comments on our recommended companies:
- Wells Fargo (WFC) – reached a $3.7 billion settlement with regulators.
- Six Flags Entertainment (SIX) – a new activist is pressuring the company to offload its real estate.
- Toshiba (TOSYY) – the preferred bidder may be ready to make a formal bid.
- Elanco Animal Health (ELAN) – activist investor Sachem Head is bailing.
| Market Cap | Recommendation | Symbol | Rec. Issue | Price at Rec. | 12/22/22 | Current Yield | Rating and Price Target |
| Small cap | Gannett Company | GCI | Aug 2017 | 9.22 | 2.09 | - | Buy (9) |
| Small cap | Duluth Holdings | DLTH | Feb 2020 | 8.68 | 5.73 | - | Buy (20) |
| Small cap | Dril-Quip | DRQ | May 2021 | 28.28 | 25.51 | - | Buy (44) |
| Small cap | ZimVie | ZIMV | Apr 2022 | 23.00 | 8.10 | - | Buy (32) |
| Mid cap | Mattel | MAT | May 2015 | 28.43 | 16.75 | - | Buy (38) |
| Mid cap | Conduent | CNDT | Feb 2017 | 14.96 | 4.09 | - | Buy (9) |
| Mid cap | Adient plc | ADNT | Oct 2018 | 39.77 | 33.65 | - | Buy (55) |
| Mid cap | Xerox Holdings | XRX | Dec 2020 | 21.91 | 14.66 | 6.8% | Buy (33) |
| Mid cap | Ironwood Pharmaceuticals | IRWD | Jan 2021 | 12.02 | 12.30 | - | Buy (19) |
| Mid cap | Viatris | VTRS | Feb 2021 | 17.43 | 10.75 | 4.5% | Buy (26) |
| Mid cap | Organon & Co. | OGN | Jul 2021 | 30.19 | 27.64 | 4.1% | Buy (46) |
| Mid cap | TreeHouse Foods | THS | Oct 2021 | 39.43 | 46.84 | - | Buy (60) |
| Mid cap | Kaman Corporation | KAMN | Nov 2021 | 37.41 | 20.64 | 3.9% | Buy (57) |
| Mid cap | The Western Union Co. | WU | Dec 2021 | 16.40 | 13.61 | 6.9% | Buy (25) |
| Mid cap | Brookfield Re | BAMR | Jan 2022 | 61.32 | 33.92 | 1.7% | Buy (93) |
| Mid cap | Polaris | PII | Feb 2022 | 105.78 | 99.62 | - | Buy (160) |
| Mid cap | Goodyear Tire & Rubber | GT | Mar 2022 | 16.01 | 10.08 | - | Buy (24.50) |
| Mid cap | M/I Homes | MHO | May 2022 | 44.28 | 47.12 | - | Buy (67) |
| Mid cap | Janus Henderson Group | JHG | Jun 2022 | 27.17 | 24.07 | 6.5% | Buy (67) |
| Mid cap | ESAB Corp | ESAB | Jul 2022 | 45.64 | 48.67 | - | Buy (68) |
| Mid cap | Six Flags Entertainment | SIX | Dec 2022 | 22.60 | 22.68 | - | Buy (35) |
| Large cap | General Electric | GE | Jul 2007 | 304.96 | 81.77 | 0.4% | Buy (160) |
| Large cap | Nokia Corporation | NOK | Mar 2015 | 8.02 | 4.61 | 2.0% | Buy (12) |
| Large cap | Macy’s | M | Jul 2016 | 33.61 | 20.02 | 3.1% | Buy (25) |
| Large cap | Toshiba Corporation | TOSYY | Nov 2017 | 14.49 | 17.67 | 5.9% | Buy (28) |
| Large cap | Holcim Ltd. | HCMLY | Apr 2018 | 10.92 | 10.19 | 4.3% | Buy (16) |
| Large cap | Newell Brands | NWL | Jun 2018 | 24.78 | 12.89 | 7.1% | Buy (39) |
| Large cap | Vodafone Group plc | VOD | Dec 2018 | 21.24 | 10.08 | 10.1% | Buy (32) |
| Large cap | Kraft Heinz | KHC | Jun 2019 | 28.68 | 40.36 | 4.0% | SELL |
| Large cap | Molson Coors | TAP | Jul 2019 | 54.96 | 51.44 | 3.0% | Buy (69) |
| Large cap | Berkshire Hathaway | BRK.B | Apr 2020 | 183.18 | 302.69 | - | HOLD |
| Large cap | Wells Fargo & Company | WFC | Jun 2020 | 27.22 | 40.68 | 2.9% | Buy (64) |
| Large cap | Western Digital Corporation | WDC | Oct 2020 | 38.47 | 30.64 | - | Buy (78) |
| Large cap | Elanco Animal Health | ELAN | Apr 2021 | 27.85 | 11.49 | - | Buy (44) |
| Large cap | Walgreens Boots Alliance | WBA | Aug 2021 | 46.53 | 38.44 | 5.0% | Buy (70) |
| Large cap | Volkswagen AG | VWAGY | Aug 2022 | 19.76 | 15.44 | 4.9% | Buy (70) |
| Large cap | Warner Bros Discovery | WBD | Sep 2022 | 13.13 | 9.23 | - | Buy (20) |
| Large cap | Dow | DOW | Oct 2022 | 43.90 | 50.17 | 5.6% | Buy (60) |
| Large cap | Capital One Financial | COF | Nov 2022 | 96.25 | 89.49 | 2.7% | Buy (150) |
Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at bruce@cabotwealth.com or to our friendly customer support team at support@cabotwealth.com. 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.
