“It takes a gutsy investor to buy a stock when it’s down and the bad news about the company shows little sign of abating. But such bottom-fishing can be enormously profitable if you’re right about the long-term prospects of an outfit for which the here-and-now crowd on Wall Street has no patience. Take the Cabot Turnaround Letter, for example. Buying out-of-favor stocks has made it one of the best-performing investment newsletters in the business, returning an annualized 21.2% for the five years ended November 30, compared with just 11.2% for the broad market, as measured by the Standard & Poor’s 500 index.”