Get More Tips on Turnarounds

Maybe you've read some of my columns before as RealMoney specials. If so, then you know my specialty: finding turnaround gems.

If not, you might want to familiarize yourself with this investing strategy. Picking solid turnaround plays has allowed me to beat a tough market by a pretty handy margin. In fact, my top 10 turnaround stocks in 2001 generated an average return of 48.58%, solidly outperforming the S&P 500 for the year. Some of my biggest winners include J.C. Penney ( JCP), up 62% since I first highlighted it, and Office Depot ( ODP), up 88% since I mentioned it.

A New Way to Learn More

Not sure what turnaround investing is? Put simply, I look for companies that have a significant disparity between their stock values and their underlying business values. Generally, I stick with plain-vanilla, "real" companies in a small- to mid-cap universe. I don't buy tech, and I don't buy into mutual funds. I don't pay much attention to Wall Street research, either. What I do, however, is sift through a universe of 800 stocks, looking for valuation treasures.

Interested in finding out more? Although I generally write once or twice a week for RealMoney, I receive lots of email requests for more turnaround ideas -- and many readers have specifically asked me to do a newsletter.

My newsletter, Arne Alsin's Turnaround Report, is available on a subscription basis through TheStreet.com. It's intended for my readers who want more.

A Sample Taste

I'm still on RealMoney.com, just as always, penning my columns regularly and contributing to the Columnist Conversation. But if you want more than what I already do for RealMoney.com, consider signing up for this newsletter. Here's a peek into the archives at the first three issues:

  • Edition No. 1: I analyzed and recommended three new turnaround stocks, companies that aren't on my current list of Top 10 Turnaround Candidates.

  • Edition No. 2: I targeted two turnaround traps. These are "value" stocks that you'll recognize, and they're held by some of the most popular value money managers. I did a detailed analysis that showed you why it's a mistake to fall into the trap of owning them.

  • Edition No. 3: I analyzed another turnaround stock that could end up as a real success story.

I think we're in a multiyear cycle that's going to prove difficult to navigate. I'm approaching the market as if the indices will return between -10% and +10% annually for the next few years. That's not an environment where investing in an S&P 500 index fund will be rewarding. That's an environment where your ability to pick stocks will determine your success or failure.

Join me in that adventure -- with both my continuing RealMoney columns and my newsletter, Arne Alsin's Turnaround Report.

Arne Alsin is the founder and principal of Alsin Capital Management, an Oregon-based investment advisor specializing in turnaround situations. At time of publication, neither Alsin nor ACM held a position in any securities mentioned in this column, although holdings can change at any time. 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@alsincapital.com. Click here to receive Arne's latest favorite stock picks from his newsletter, The Turnaround Report.

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