4 turnarounds from the worst performer list

by George Putnam, editor The Turnaround Letter

One of our favorite places to look for turnaround candidates is a list of the worst performers in a certain segment of the market. Because investor sentiment can change very rapidly, today’s dogs often become tomorrow’s darlings, and those who are willing to go against the crowd can reap significant profits.

Among the worst performers in the S&P 500 index since the market hit its lows last June are Apple (AAPL), F5 Networks (FFIV), J.C. Penney (JCP) and Monster Beverage (MNST).

To be sure, many of these stocks carry some risk. There are, after all, reasons why they have underperformed.  But the market often overreacts to these risks, and if these companies can fix their problems, their stockholders will be very handsomely rewarded. (more)

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