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Turnaround Letter
Out-of-Favor Stocks with Real Value

June 23, 2023

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This past week, none of our companies reported earnings and there were no ratings changes.

Shares of ESAB Corp (ESAB) are approaching but remain below our 68 price target. We like the company’s fundamentals, and the valuation isn’t stretched, so we see no reason to change our rating, at least until the shares reach or exceed our price target.

The next earnings report is from Walgreens Boots Alliance (WBA), scheduled for Tuesday, June 27. Estimates call for earnings of $1.07/share and revenues of $34.1 billion. We’ll be watching the core retail business for signs of revenue and margin improvement and the new healthcare segment for more progress with its profit growth and potential. Our expectations are low and our patience is starting to wear a bit thin for this struggling turnaround. We’d like to see some reasons for renewed optimism.

Friday, June 23, 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 5½ minutes and covers:

  • Comments on recommended companies
    • Gannett (GCI) – Suing Alphabet for monopolizing digital advertising.
    • General Electric (GE) – Wins contracts to supply fighter jet engines to India.
  • Elsewhere in the markets
    • Surge of outflows from value-focused mutual funds and ETFs
    • Interest rates in the developed world continue to climb, but markets and the economy can likely handle a 5% to 5.5% endgame, but not 8%.
Market CapRecommendationSymbolRec.
Price at
Rating and Price Target
Small capGannett CompanyGCIAug 20179.22 2.05 - Buy (9)
Small capDuluth HoldingsDLTHFeb 20208.68 6.12 - Buy (20)
Small capDril-QuipDRQMay 202128.28 22.67 - Buy (44)
Mid capMattelMATMay 201528.43 17.94 - Buy (38)
Mid capAdient plcADNTOct 201839.77 36.96 - Buy (55)
Mid capXerox HoldingsXRXDec 202021.91 14.596.9%Buy (33)
Mid capViatrisVTRSFeb 202117.43 10.054.8%Buy (26)
Mid capTreeHouse FoodsTHSOct 202139.43 52.69 - Buy (60)
Mid capKaman CorporationKAMNNov 202137.41 23.703.4%Buy (57)
Mid capThe Western Union Co.WUDec 202116.40 11.418.2%Buy (25)
Mid capBrookfield ReBNREJan 202261.32 31.891.8%Buy (93)
Mid capPolarisPIIFeb 2022105.78 116.24 - Buy (160)
Mid capGoodyear Tire & RubberGTMar 202216.01 13.44 - Buy (24.50)
Mid capJanus Henderson GroupJHGJun 202227.17 26.785.8%Buy (67)
Mid capESAB CorpESABJul 202245.64 64.641.5%Buy (68)
Mid capSix Flags EntertainmentSIXDec 202222.60 27.32 - Buy (35)
Mid capKohl’s CorporationKSSMar 202332.43 21.739.2%Buy (50)
Mid capFirst Horizon CorpFHNApr 202316.76 11.195.4%Buy (24)
Mid capFrontier Group HoldingsULCCApr 20239.49 9.39 - Buy (15)
Large capGeneral ElectricGEJul 2007304.96 104.820.3%Buy (160)
Large capNokia CorporationNOKMar 20158.02 4.072.2%Buy (12)
Large capMacy’sMJul 201633.61 15.194.4%Buy (25)
Large capToshiba CorporationTOSYYNov 201714.49 15.886.5%Buy (28)
Large capHolcim Ltd.HCMLYApr 201810.92 13.293.3%Buy (16)
Large capNewell BrandsNWLJun 201824.78 7.923.5%Buy (39)
Large capVodafone Group plcVODDec 201821.24 9.1811.1%Buy (32)
Large capBerkshire HathawayBRK.BApr 2020183.18 336.96 - HOLD
Large capWells Fargo & CompanyWFCJun 202027.22 41.062.9%Buy (64)
Large capWestern Digital CorporationWDCOct 202038.47 38.35 - Buy (78)
Large capElanco Animal HealthELANApr 202127.85 9.99 - Buy (44)
Large capWalgreens Boots AllianceWBAAug 202146.53 31.896.0%Buy (70)
Large capVolkswagen AGVWAGYAug 202219.76 16.535.6%Buy (70)
Large capWarner Bros DiscoveryWBDSep 202213.13 12.09 - Buy (20)
Large capCapital One FinancialCOFNov 202296.25 106.912.2%Buy (150)
Large capBayer AGBAYRYFeb 202315.41 13.733.9%Buy (24)
Large capTyson FoodsTSNJun 202352.01 50.413.8%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.