Investing in Turnarounds
In the aftermath of the worst economic recession in nearly eighty years there are a lot of companies that are just putting themselves back together. The prime example was the company that once was the world’s largest corporation and the world’s largest auto maker. Things got so bad that General motors filed for bankruptcy and required a government bailout to stay in existence as a company. GM came out of bankruptcy. At the beginning of 2012 its stock sold for under $20 a share and now it sells for $35 a share. This brings up the topic of investing in turnarounds. Investing in turnarounds does not necessarily mean investing in companies that went broke. It can just be investing in companies that are displaying growth and vitality after a period of stagnation. For the long term investor interested in profiting by investing in turnarounds there are a number of things to look for. Some of these opportunities may be the most solid opportunities in today’s value investing.
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