The neglected art of the turnaround
How do investors play the turnaround game without getting flung to the wrong side of the field?
With the market — until the recent meltdown — mostly enamoured of high-flying growth stocks, the art of the turnaround has been much neglected by investors.
This is understandable. After the momentum in large-cap stocks such as Naspers/Prosus, Anglo American, Remgro and Richemont — or even quality mid-caps such as Transaction Capital and Afrimat — simply backing a quality growth stock with fair prospects is a far less onerous task than having to constantly review the many external and internal factors that inform a company turnaround. And sometimes the trouble that companies — especially small caps — get themselves into is truly mind-boggling...
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