This was originally sent to subscribers of TheStreet.com Stocks Under $10 on March 20 at 2:36 p.m. EST. For more information on this newsletter, click here.We have Gemstar ( GMST), a potential turnaround play, on our radar screen, but aren't taking any action just yet. We want to monitor the company's restructuring efforts for another quarter or two before determining whether the owner and distributor of TV Guide and TV Guide Online is on the path to a sustainable recovery in earnings. Gemstar operates in three segments: publishing, cable and satellite, and consumer electronics (CE) licensing. The publishing business represents about half of Gemstar's sales and includes TV Guide and TV Guide Online. The cable satellite division, which represents 39% of Gemstar's sales, is made up of the TV Guide Channel and TVG horse racing network. Gemstar's licensing business is 14% of total sales from licensing its technology for interactive television programming to cable and satellite companies such as Comcast ( CMCSA). After watching the circulation of its flagship product, TV Guide magazine, decline over the past few years, Gemstar announced a redesign of the publication in October. The revamp added color to the once black-and-white publication. In addition, Gemstar increased the size of the magazine to a full-size standard magazine format that includes more feature articles, photos and behind-the-scenes information on television programs and actors. Thus far, the redesign appears to be a success, with total subscribers rebounding to 4.9 million for the first 11 issues through the beginning of January, or 50% ahead of its advertising rate base of 3.2 million subscribers. In addition, circulation at newsstands showed early improvements as well, quickly reaching 400,000 copies, or 35% higher than the year-ago period. As part of a plan to revamp the entire publishing segment, Gemstar stopped printing its money-losing Inside TV magazine in November, which was launched in April 2005. Also, the company sold its SkyMall business to investment firm Spire Capital Partners for $52 million in December 2005. This should improve Gemstar's margins in the print business and keep management focused on opportunities to grow TV Guide.