Boeing (BA - commentary - Cramer's Take) is another example of a company that went through a lengthy period of denial and defensiveness before a purging phase initiated by new CEO Harry Stonecipher. All of the negativity was put on the table: poor aerospace demand, criminal and other investigations, delay of the tanker program and more. All of this negativity was more than priced into the stock when it traded near $25 per share in 2003. It recently traded at about $50 per share.
So what company is an appealing turnaround today, where the price reflects, as I mention above, all of the negativity, and then some? UnumProvident (UNM - commentary - Cramer's Take), a leading disability insurer, currently sells at a stock quote equal to just three-fourths of net assets. New CEO Thomas Watjen is doing an impressive job turning around the company, pursuing slower, more-profitable growth now. Investors should expect, over the next year or two, for this $15.75 stock to trade closer to my calculation of the minimum underlying business value, at $25 per share.
P.S. Will you be there when Cramer makes his next move?
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At time of publication, Alsin and/or ACM was long Boeing and UnumProvident, although holdings can change at any time.
Arne Alsin is the founder and principal of Alsin Capital Management, an Oregon-based investment advisor and portfolio manager of The Turnaround Fund, a no-load mutual fund. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Alsin appreciates your feedback and invites you to send it to arne.alsin@thestreet.com. Click here to receive Arne's latest favorite stock picks from his newsletter, TheStreet.com Value Investor.
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