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Turnaround Letter
Out-of-Favor Stocks with Real Value

March 24, 2023

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This week, amidst the fireworks in banks, the Fed and more market volatility, there were no earnings reports and we had no changes in ratings on our recommended stocks.

Next Wednesday, we publish the April edition of the Cabot Turnaround Letter. We’ll tip our hand on the first article – which will be on possible bargains in the banking industry.

The next earnings report is Walgreens Boots Alliance (WBA), which reports on March 28.

Friday, March 24, 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 13 minutes and covers:

  • Comments on other recommended companies
    • Toshiba (TOSYY) – Deal reached at a disappointing $17.57/ADR.
    • Wells Fargo & Company (WFC) and Capital One Financial (COF) – comments about current banking industry stresses.
    • Nokia (NOK) – Will benefit from FCPA monitoring at Ericsson.
    • Walgreens Boots Alliance (WBA) – Concerns in advance of earnings report.
  • Elsewhere in the markets
    • More on banking industry stresses and the importance of leadership.
  • Final note
    • Two worthy weekend distractions: errant asteroid to pass between Earth and moon, and trading in NCAA brackets?

Market CapRecommendationSymbolRec.
Issue
Price at
Rec.
3/23/23Current
Yield
Rating and Price Target
Small capGannett CompanyGCIAug 20179.22 1.86 - Buy (9)
Small capDuluth HoldingsDLTHFeb 20208.68 5.78 - Buy (20)
Small capDril-QuipDRQMay 202128.28 27.43 - Buy (44)
Mid capMattelMATMay 201528.43 16.19 - Buy (38)
Mid capAdient plcADNTOct 201839.77 37.60 - Buy (55)
Mid capXerox HoldingsXRXDec 202021.91 14.566.9%Buy (33)
Mid capIronwood PharmaceuticalsIRWDJan 202112.02 10.51 - Buy (19)
Mid capViatrisVTRSFeb 202117.43 9.205.2%Buy (26)
Mid capTreeHouse FoodsTHSOct 202139.43 47.51 - Buy (60)
Mid capKaman CorporationKAMNNov 202137.41 21.363.7%Buy (57)
Mid capThe Western Union Co.WUDec 202116.40 10.838.7%Buy (25)
Mid capBrookfield ReBNREJan 202261.32 29.741.9%Buy (93)
Mid capPolarisPIIFeb 2022105.78 106.17 - Buy (160)
Mid capGoodyear Tire & RubberGTMar 202216.01 10.07 - Buy (24.50)
Mid capM/I HomesMHOMay 202244.28 60.37 - Buy (67)
Mid capJanus Henderson GroupJHGJun 202227.17 25.196.2%Buy (67)
Mid capESAB CorpESABJul 202245.64 56.54 - Buy (68)
Mid capSix Flags EntertainmentSIXDec 202222.60 23.82 - Buy (35)
Mid capKohl’s CorporationKSSMar 202332.43 21.669.2%Buy (50)
Large capGeneral ElectricGEJul 2007304.96 91.590.3%Buy (160)
Large capNokia CorporationNOKMar 20158.02 4.602.0%Buy (12)
Large capMacy’sMJul 201633.61 17.193.8%Buy (25)
Large capToshiba CorporationTOSYYNov 201714.49 17.456.0%Buy (28)
Large capHolcim Ltd.HCMLYApr 201810.92 12.453.5%Buy (16)
Large capNewell BrandsNWLJun 201824.78 11.528.0%Buy (39)
Large capVodafone Group plcVODDec 201821.24 11.049.2%Buy (32)
Large capMolson CoorsTAPJul 201954.96 49.563.1%Buy (69)
Large capBerkshire HathawayBRK.BApr 2020183.18 298.37 - HOLD
Large capWells Fargo & CompanyWFCJun 202027.22 36.613.3%Buy (64)
Large capWestern Digital CorporationWDCOct 202038.47 35.27 - Buy (78)
Large capElanco Animal HealthELANApr 202127.85 8.79 - Buy (44)
Large capWalgreens Boots AllianceWBAAug 202146.53 32.335.9%Buy (70)
Large capVolkswagen AGVWAGYAug 202219.76 16.565.6%Buy (70)
Large capWarner Bros DiscoveryWBDSep 202213.13 14.53 - Buy (20)
Large capCapital One FinancialCOFNov 202296.25 89.912.7%Buy (150)
Large capBayer AGBAYRYFeb 202315.41 15.173.6%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 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.

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.