Cabot Turnaround Letter
Investor sentiment about a company’s fundamentals can change much faster and with much greater magnitude than the actual fundamentals. Be among the first to learn about out-of-favor stocks with real value and that are poised for rebounds and growth. We recommend that investors consider 3 strategies to tailor their mix of stock holdings to more precisely match their tolerance for risk and uncertainty—get them in Cabot Turnaround Letter.
Among smart investors, there are secrets and there are secrets.
Buying low is a widely known secret of smart investors.
The massive market tumble last year provided a great opportunity to buy many stocks at bargain prices.
But as I said, it was a widely known secret so the bargain prices were bid back up pretty quickly and only the lucky few who got in first made the really big money.
However, there are other secrets.
Secrets that aren’t as well known.
Secrets I have used to produce profits of 113%, 209%, 328% and even 649% on individual stocks.
In fact, using the secret approach I’m going to tell you about here, I’ve made 136 trades over the past decade with a market-trouncing average return of 60%.
Stunning profits like that may sound too good to be true but I’m going to show you every one of these trades so you can see for yourself they’re real. More on that in a moment.
First, I will reveal to you how I am able to consistently find stocks that beat the market.
To understand my approach you have to keep in mind that investor sentiment about a company’s fundamentals can change much faster and with much greater magnitude than the actual fundamentals.
At its most basic, my stock selection system finds opportunities where this sentiment becomes overly pessimistic.
I concentrate on identifying out-of-favor stocks with real value undergoing significant positive change.
I am looking for turnaround opportunities
While many stocks today may seem like turnaround stocks, not all will return to prosperity.
Some companies will go bankrupt, some will languish for years, while others will rebound into a stronger future.
And now, while most investors are selling, this is the time to find the true bargains.
But, how best to sort through the jumble?
With my stock selection system, the selected stocks have 100% upside potential, or more, over the next 2-3 years.
(Again, I’ll show you all of my closed-out trades from the last decade in a moment so you can judge for yourself how we’ve done.)
The types of situations that will attract our attention may include:
- New management or board oversight
- Credible shareholder exerting pressure
- Spin-off transaction (both sides)
- Fresh start after emerging from bankruptcy
- Imminent cyclical upturn
- Temporary legal or product problems
My research emphasizes in-depth fundamental analysis.
I dig into the business and its strategic issues.
Understanding the leadership team is central to our approach: management determines how the company’s resources are converted into value for shareholders.
I want to understand why a stock is priced the way it is and what the underlying value will likely be following the turnaround.
And I am always guided by the maxim, “price is what you pay, value is what you get.”
I invest as if I am buying the entire company, not just a ticker symbol.
That means I scrutinize the financials.
I review the management statements.
Study industry analysts outlook reports.
Analyze the stock charts.
And, I compare it all to that of its industry competitors.
That’s how I’m able to find stocks that are poised for a turnaround.
And I am not a trader or crowd follower.
A really good crowd follower can beat the market by a few percentage points. But not every year.
I am looking for high-conviction stocks I can buy and hold with a high probability of capturing profits of 100-300% in 2-3 years.
That’s what I do. Year after year.
And, I would be pleased to do that for you.
How, you may ask?
I am writing to tell you about the Cabot Turnaround Letter.
My friend and mentor, investing expert George Putnam started the Turnaround Letter in 1986. We’ve been publishing ever since, making money for investors who are looking for stocks with exceptional potential to rebound and generate profits as high as 650%.
There is no shortcut to those kind of profits.
It takes deep research.
And an experienced eye.
I have had the opportunity to work side by side with George for much of that time so I am delighted to continue his legacy.
And, right now I have an exclusive offer for a limited number of people. More on that in a moment.
Before I do that, I’d like to give you an idea of how successful this approach has been.
First, a confession. No one, including me, anticipated that a global pandemic and an oil price war would occur simultaneously, leading to a situation where a roll of toilet paper would rival the cost of a barrel of oil.
Nor had we anticipated the speed of the financial markets’ unraveling.
But, by focusing on valuations and risks while others focused on the ever-upward trend, we helped our readers be prepared when unpredictable and catastrophic events struck.
An age-old trading question asks, “is it a stock market or a market of stocks?”
If most stocks tend to move together, as they have over the past several years, one can generally consider the stock market as a singular entity.
However, with the broad market lurching up or down by 3% or more a day, and individual stocks diverging wildly from each other, it clearly is a market of (individual) stocks.
In such a market of stocks, many investors may feel the volatility is too high and the economic outlook is too uncertain. They feel compelled to reduce or even eliminate their stock holdings.
However, one of our most basic investment beliefs is don’t try to time the market.
Just as the low volatility and an apparently clear economic outlook made it tempting to add to shares last year, the recent conditions make it tempting to bail out now.
Timing the market can lead to financially damaging “whipsaw” investing – bailing just before the market rebounds and then diving back in just prior to a drop.
3 Turnaround Investing Strategies for Right Now
We recommend investors consider 3 strategies to tailor their mix of stock holdings to more precisely match their tolerance for risk and uncertainty – without necessarily changing the total size of their stock holdings.
These strategies leverage the merits of looking at individual stocks, as each company has its own quality, risk and valuation traits.
Strategy #1: The first strategy emphasizes higher quality companies with strong businesses and financial positions that assuredly will survive the downturn, yet whose shares now trade at lower prices. Many have value-enhancing strategic changes underway.
Investors may find these stocks to be useful holdings if choosing to reduce their riskier positions. If the market takes another sharp downturn, these stocks may become available at truly great prices, providing potentially outsized long-term returns.
Strategy #2: The second strategy is to buy harder-hit stocks of companies that generally have the financial strength to survive all but the most debilitating downturn. Often these companies offer high dividend yields, such that even if the dividend were cut in half the yield would still be appealing.
Looking for generous dividends that compensate you while you wait for the stock price to rebound is a favored strategy of the Cabot Turnaround Letter.
Strategy #3: The third strategy emphasizes high-risk, high-return stocks, which may not be appropriate for most investors, but may be appealing to some. This approach focuses on debt-laden companies or companies in the early stages of a potential turnaround whose stocks have the potential for a 3X or more increase if the economic downturn is shallow.
These stocks may best be viewed as speculative options and offer the prospect of exceptional returns while also being higher risk.
So, for example, let me tell you about one of the sectors currently on my radar.
Restaurant companies might appear to be awful investments right now.
With consumers focused on social distancing and lockdowns to help prevent the spread of the coronavirus, many restaurants experienced no revenues, while others generated a little income through delivery and takeout.
There is considerable uncertainty about when the medical and economic crisis will abate.
Despite this uncertain outlook, the crisis will eventually subside.
As consumers are creatures of habit, once liberated from the Covid-19 threat, they will return to their dining-out patterns.
The recovery may ramp up slowly or happen in a surging mini-boom.
Eventually, more normal conditions will restore prosperity to the restaurant industry, albeit perhaps at a reduced level or with some unexpected but mild structural change in consumer preferences.
Two traits are key to finding opportunities in restaurant stocks.
The first is survivability – the company must be able to endure the downturn and have reasonable prospects to prosper in the eventual recovery.
Companies best positioned have mainstream appeal, already-successful concepts, sturdy balance sheets, geographically diverse operations and affordable menu prices.
Many restaurants, particularly fast-food varieties, will see a milder impact as their drive-thru windows, which can produce half or more of total revenues, remain open.
Also, lower revenues are partly offset by lower labor, food and other variable store-level costs, helping to reduce losses.
In normal times, franchise fees provide a stable source of income, but as the payments are typically based on store revenues, parent companies can’t count on these fees.
Critically, companies with sizable cash balances and access to large lines of credit will be best able to meet their compensation, rent and other obligations.
The second key trait is a sufficiently discounted stock price (or valuation).
While few restaurant stocks had much appeal at pre-pandemic prices, many have much greater appeal now.
Even if the fundamentals take a long time to improve, shares of many high-quality restaurant companies are selling at such low prices that the margin of safety is vast.
Said a different way, if only one of the two traits are present, the opportunity could be a mirage, but with both present the opportunity is real.
This is why restaurant stocks are on the short list of investments I’m watching closely.
What to do now?
I can’t say when the COVID-19 crisis will subside, nor estimate the precise depth of the coming recession.
But I can say with great confidence society and the economy will recover.
And when it does, there will be extraordinary investment opportunities.
Most people will miss them.
Some will spot them.
A few will make exceptional profits.
Arguably, there has never been a better time to be a Turnaround Letter reader.
I focus on finding the winning turnaround stocks.
Our long-term track record has beaten the S&P 500. And, our best returns have followed market crashes like the one we’ve all just experienced.
I stick to a method. And that method has worked. For decades.
The Cabot Turnaround Letter has done its job with distinction, consistently outpacing the S&P 500 since 1986.
To save you the trouble of counting, here’s the final score – the winners outnumber the losers 29 to 108. That’s 79% winners. On top of that the average winner exceeded the average loser by more than 50%
That’s what has produced the Cabot Turnaround Letter’s impressive results:
• A $10,000 investment in Cabot Turnaround Letter stock picks starting 20 years ago would be worth $74,736 today, while $10,000 invested in the S&P 500 would only have returned $42,479.
That’s why we can truly call these market-beating returns.
The kind we’ve been producing for decades.
And, I’m going to tell you how you can get in on this in a moment.
But first, let me introduce myself.
My name is Bruce Kaser. I bring over 25 years of professional investing experience to the Cabot Turnaround Letter, having previously headed RBC Global Asset Management’s $1 billion institutional value equity platform, founded and headed the Ironwood Event-Driven Value strategy and was a principal and head of value investing at a $3 billion in assets private investment management firm. My formal education includes an MBA from the University of Chicago and a Bachelor of Science from Miami University (Ohio).
And, Cabot Turnaround Letter is backed up by one of the most trusted names in the investment advisory publishing industry.
About the Publisher: Cabot Wealth Network
The Cabot Turnaround Letter is published by Cabot Wealth Network which was founded in 1970 by Carlton Lutts, a disciplined investor with an engineering mind who developed a proprietary stock picking system using technical and fundamental analyses.
Since then Cabot Wealth Network, headquartered in Salem, Massachusetts, has grown to become one of the largest and most-trusted independent investment advisory publishers in the country, serving hundreds of thousands of investors across North America and around the world.
For over 50 years Cabot Wealth Network has used its proprietary investing systems and deep expertise to help people become wealthy. That’s a milestone few other investment advisory publishers can claim. And you don’t make it 50+ years without producing great results for your customers.
Look at all you receive when you subscribe to the Cabot Turnaround Letter
- Immediate access to my current portfolio of turnaround recommendations
- A new high-conviction contrarian stock recommendation each month with my extensive, proprietary research
- 100+ additional value investing ideas each year of the most appealing stocks in out-of-favor industries or niches each year
- Weekly updates and podcasts with earning updates and continued analysis on our recommended stocks
- Market and trading alerts
- Exclusive access to the unique Catalyst Report – companies with game-changing new leadership, spin-offs and other catalysts that can unlock real turnaround value
- 2 FREE special reports: 10 Simple Rules for Spotting Successful Turnaround Stocks, 10 Mistakes to Avoid When Turnaround Investing
- 24/7 access to subscriber-only website
- Exclusive email access to me, Bruce Kaser, for answers to your questions
Plus, you have the assurance of the Cabot Wealth 100% GUARANTEE:
You must be satisfied, you must increase your profits
Satisfaction 100% Guaranteed: I’m so confident that Cabot Turnaround Letter will make you a more skilled investor, that I’m willing to guarantee your satisfaction 100%.
If for any reason during your first 30 days as a subscriber, you don’t believe the advice and recommendations are helping you increase your investment returns, just let us know. We’ll promptly refund every penny of your subscription fee, 100%.
Profit Increase Guaranteed 100%: The entire purpose of Cabot Turnaround Letter is to increase your investment returns – your profits.
If for any reason over the first year of your subscription you do not realize market-beating returns by using my advice, we’ll extend your subscription for an additional year.
The investment for this exclusive service is $997 per year. But, as a Charter Subscriber you can get a full year for just $497.
That’s right. You can save $500!
There’s just one catch.
And it’s an important one.
Because many of these turnaround stocks can have lower trading volume or are sensitive to small positive changes in sentiment we need to limit the number of subscribers. Otherwise our recommendations can drive a jump in demand that materially raises the price, meaning some subscribers don’t get as good an entry price.
To avoid that problem, we limit the number of subscribers we accept at any given time.
Right now we have room for just 90 more subscribers.
So, if you want to make the kinds of dramatic profits Cabot Turnaround Letter has delivered since 1986 you need to act now.
The 90 subscriptions will sell on a first come, first served basis. After they sell out, you may sign up to be on the waiting list. We will notify you if and when a space opens up.
If you take investing seriously. . .
I hope you’ll seize this opportunity to beat the market by using my stock selection system.
Start today by saving $500 on your subscription, reading your two free reports and getting my five hottest tips on turnaround profits: subscribe now.
Yours for exceptional turnaround profits,
Chief Analyst, Cabot Turnaround Letter
P.S. Let me make perfectly clear my offer to help you dramatically increase your profits in the coming years. Here’s what you receive as a Charter Subscriber to Cabot Turnaround Letter
- 2 FREE special reports: 10 Simple Rules for Spotting Successful Turnaround Stocks and 10 Mistakes to Avoid When Turnaround Investing
- My current turnaround portfolio of recommendations that can double (or more) your investments in the next 12-24 months
- $500 discount off the regular price of $997 — you pay only $497
- You receive a guarantee of 100% money back if you’re not satisfied (first 30 days)
I urge you to act now. This offer is only valid for the first 90 people to respond.