NEW YORK (TheStreet) -- If you'd read some of my posts on my blog, you'll notice a pattern. I like turnaround stories, management changes, and restructurings. Companies that have been mismanaged but have a brand name and potential for market share gains, revenue upside and potential for margins to recover which in turn could lead to positive operating leverage. Based on this theme, my next idea is Diebold (DBD).
You may know DBD as the largest U.S. manufacturer of ATMs, which it is, but it also has a strong presence in electronic security - which is a big area for future growth.
I think earnings have bottomed and the company has earnings power potential of $2.50 or more in 2016 vs. the $1.32 just put up in 2013. It has a new management team, has an aggressive cost cutting program underway, and conservative guidance. The balance sheet is strong with just 12% net debt/cap, the 3% dividend is well secured and I think over time we'll see cash distribution growth. The company has a fairly new management team - the CEO Andy Mattes joined in June 2013 from HP (HPQ) and the COO George Mayes Jr. was promoted from Executive VP in Global Operations in January 2013. The CFO stepped down late last year and the company is currently looking for a replacement - for now Christopher Chapman is in the interim role, he is VP of Global Finance.