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Turnaround Letter
Out-of-Favor Stocks with Real Value

July 7, 2023

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This was a quiet week for our stocks. Earnings season starts next Friday, with Wells Fargo (WFC) reporting, followed by Nokia (NOK) and First Horizon (FHN) the next week. Based on the preliminary calendar, the earnings deluge starts on Tuesday, July 27.

Brief comments on other Cabot Turnaround Letter recommended companies. Your chief analyst is on vacation this week, so the podcast will return next Friday, July 14:

  • Mattel (MAT) – The new Barbie movie is scheduled to be released on July 21. Starring international movie stars Margot Robbie and Ryan Gosling, both whom coincidentally were also in the movie The Big Short, Barbie could be a huge win for Mattel. A big box office showing could put sizeable movie profits into Mattel’s coffers, launch a new genre of series with Marvel-like possibilities, and boost sales of Mattel’s Hollywood-related toys. Even a modest showing carries only limited direct financial risk, as Warner Bros is covering most of the $100 million in costs. But, the movie has already created a geopolitical flap as its cartoon-like depiction of the world apparently showed the Chinese nine-dash line, which led Vietnam to ban the movie and set off a social media mini-storm about how Hollywood bends to the Chinese Communist Party. And, if there is some issue with the social or other messaging, the movie could damage the otherwise strong Barbie brand. So, a simple movie is now a lightning rod for all sorts of issues. Our hope as Mattel shareholders is that it catches lightning in a bottle.
  • Brookfield Re (BNRE) – American Equity Investment Life has accepted Brookfield Re’s offer for the remaining 80% of AEL’s shares that Brookfield doesn’t own.
  • Toshiba (TOSYY) – The tender offer from a consortium including Japan Industrial Partners to buy Toshiba was delayed until August or later. Delays in anti-trust approvals appear to be the cause. Under the March 23 buyout agreement, Toshiba has six months, or until September 23, to launch its tender offer. This Toshiba saga is not yet over.

Market CapRecommendationSymbolRec. IssuePrice at Rec.7/6/23Current YieldRating and Price Target
Small capGannett CompanyGCIAug 20179.22 2.10 - Buy (9)
Small capDuluth HoldingsDLTHFeb 20208.68 6.06 - Buy (20)
Small capDril-QuipDRQMay 202128.28 23.17 - Buy (44)
Small capL.B. FosterFSTRJul 202313.60 14.00 - Buy (44)
Mid capMattelMATMay 201528.43 19.91 - Buy (38)
Mid capAdient plcADNTOct 201839.77 38.45 - Buy (55)
Mid capXerox HoldingsXRXDec 202021.91 14.656.8%Buy (33)
Mid capViatrisVTRSFeb 202117.43 9.844.9%Buy (26)
Mid capTreeHouse FoodsTHSOct 202139.43 49.60 - Buy (60)
Mid capKaman CorporationKAMNNov 202137.41 23.733.4%Buy (57)
Mid capThe Western Union Co.WUDec 202116.40 11.328.3%Buy (25)
Mid capBrookfield ReBNREJan 202261.32 32.141.7%Buy (93)
Mid capPolarisPIIFeb 2022105.78 121.25 - Buy (160)
Mid capGoodyear Tire & RubberGTMar 202216.01 13.29 - Buy (24.50)
Mid capJanus Henderson GroupJHGJun 202227.17 26.285.9%Buy (67)
Mid capESAB CorpESABJul 202245.64 64.181.5%Buy (68)
Mid capSix Flags EntertainmentSIXDec 202222.60 25.31 - Buy (35)
Mid capKohl’s CorporationKSSMar 202332.43 23.868.4%Buy (50)
Mid capFirst Horizon CorpFHNApr 202316.76 11.675.1%Buy (24)
Mid capFrontier Group HoldingsULCCApr 20239.49 9.94 - Buy (15)
Large capGeneral ElectricGEJul 2007304.96 107.370.3%Buy (160)
Large capNokia CorporationNOKMar 20158.02 4.142.2%Buy (12)
Large capMacy’sMJul 201633.61 15.904.2%Buy (25)
Large capToshiba CorporationTOSYYNov 201714.49 15.556.7%Buy (28)
Large capHolcim Ltd.HCMLYApr 201810.92 12.573.5%Buy (16)
Large capNewell BrandsNWLJun 201824.78 8.673.2%Buy (39)
Large capVodafone Group plcVODDec 201821.24 9.1211.2%Buy (32)
Large capBerkshire HathawayBRK.BApr 2020183.18 341.46 - HOLD
Large capWells Fargo & CompanyWFCJun 202027.22 42.892.8%Buy (64)
Large capWestern Digital CorporationWDCOct 202038.47 37.36 - Buy (78)
Large capElanco Animal HealthELANApr 202127.85 9.81 - Buy (44)
Large capWalgreens Boots AllianceWBAAug 202146.53 29.116.6%Buy (70)
Large capVolkswagen AGVWAGYAug 202219.76 16.495.6%Buy (70)
Large capWarner Bros DiscoveryWBDSep 202213.13 12.67 - Buy (20)
Large capCapital One FinancialCOFNov 202296.25 107.262.2%Buy (150)
Large capBayer AGBAYRYFeb 202315.41 13.234.1%Buy (24)
Large capTyson FoodsTSNJun 202352.01 52.103.7%Buy (78)

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.