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 Cap | Recommendation | Symbol | Rec. Issue | Price at Rec. | 7/6/23 | Current Yield | Rating and Price Target |
| Small cap | Gannett Company | GCI | Aug 2017 | 9.22 | 2.10 | - | Buy (9) |
| Small cap | Duluth Holdings | DLTH | Feb 2020 | 8.68 | 6.06 | - | Buy (20) |
| Small cap | Dril-Quip | DRQ | May 2021 | 28.28 | 23.17 | - | Buy (44) |
| Small cap | L.B. Foster | FSTR | Jul 2023 | 13.60 | 14.00 | - | Buy (44) |
| Mid cap | Mattel | MAT | May 2015 | 28.43 | 19.91 | - | Buy (38) |
| Mid cap | Adient plc | ADNT | Oct 2018 | 39.77 | 38.45 | - | Buy (55) |
| Mid cap | Xerox Holdings | XRX | Dec 2020 | 21.91 | 14.65 | 6.8% | Buy (33) |
| Mid cap | Viatris | VTRS | Feb 2021 | 17.43 | 9.84 | 4.9% | Buy (26) |
| Mid cap | TreeHouse Foods | THS | Oct 2021 | 39.43 | 49.60 | - | Buy (60) |
| Mid cap | Kaman Corporation | KAMN | Nov 2021 | 37.41 | 23.73 | 3.4% | Buy (57) |
| Mid cap | The Western Union Co. | WU | Dec 2021 | 16.40 | 11.32 | 8.3% | Buy (25) |
| Mid cap | Brookfield Re | BNRE | Jan 2022 | 61.32 | 32.14 | 1.7% | Buy (93) |
| Mid cap | Polaris | PII | Feb 2022 | 105.78 | 121.25 | - | Buy (160) |
| Mid cap | Goodyear Tire & Rubber | GT | Mar 2022 | 16.01 | 13.29 | - | Buy (24.50) |
| Mid cap | Janus Henderson Group | JHG | Jun 2022 | 27.17 | 26.28 | 5.9% | Buy (67) |
| Mid cap | ESAB Corp | ESAB | Jul 2022 | 45.64 | 64.18 | 1.5% | Buy (68) |
| Mid cap | Six Flags Entertainment | SIX | Dec 2022 | 22.60 | 25.31 | - | Buy (35) |
| Mid cap | Kohl’s Corporation | KSS | Mar 2023 | 32.43 | 23.86 | 8.4% | Buy (50) |
| Mid cap | First Horizon Corp | FHN | Apr 2023 | 16.76 | 11.67 | 5.1% | Buy (24) |
| Mid cap | Frontier Group Holdings | ULCC | Apr 2023 | 9.49 | 9.94 | - | Buy (15) |
| Large cap | General Electric | GE | Jul 2007 | 304.96 | 107.37 | 0.3% | Buy (160) |
| Large cap | Nokia Corporation | NOK | Mar 2015 | 8.02 | 4.14 | 2.2% | Buy (12) |
| Large cap | Macy’s | M | Jul 2016 | 33.61 | 15.90 | 4.2% | Buy (25) |
| Large cap | Toshiba Corporation | TOSYY | Nov 2017 | 14.49 | 15.55 | 6.7% | Buy (28) |
| Large cap | Holcim Ltd. | HCMLY | Apr 2018 | 10.92 | 12.57 | 3.5% | Buy (16) |
| Large cap | Newell Brands | NWL | Jun 2018 | 24.78 | 8.67 | 3.2% | Buy (39) |
| Large cap | Vodafone Group plc | VOD | Dec 2018 | 21.24 | 9.12 | 11.2% | Buy (32) |
| Large cap | Berkshire Hathaway | BRK.B | Apr 2020 | 183.18 | 341.46 | - | HOLD |
| Large cap | Wells Fargo & Company | WFC | Jun 2020 | 27.22 | 42.89 | 2.8% | Buy (64) |
| Large cap | Western Digital Corporation | WDC | Oct 2020 | 38.47 | 37.36 | - | Buy (78) |
| Large cap | Elanco Animal Health | ELAN | Apr 2021 | 27.85 | 9.81 | - | Buy (44) |
| Large cap | Walgreens Boots Alliance | WBA | Aug 2021 | 46.53 | 29.11 | 6.6% | Buy (70) |
| Large cap | Volkswagen AG | VWAGY | Aug 2022 | 19.76 | 16.49 | 5.6% | Buy (70) |
| Large cap | Warner Bros Discovery | WBD | Sep 2022 | 13.13 | 12.67 | - | Buy (20) |
| Large cap | Capital One Financial | COF | Nov 2022 | 96.25 | 107.26 | 2.2% | Buy (150) |
| Large cap | Bayer AG | BAYRY | Feb 2023 | 15.41 | 13.23 | 4.1% | Buy (24) |
| Large cap | Tyson Foods | TSN | Jun 2023 | 52.01 | 52.10 | 3.7% | 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 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.
