He bought Apple at $7.82. What now?

The past six months show how the stock market can be both a source of bountiful gifts and a fast track to the poor house.  The bear market took top stocks for 2010 down 40% on average, some much worse.

But not everybody has been hurting. 

Great bargains are out there if you know where to look!

Look at these profits recently racked up by subscribers who followed the model portfolio of The Turnaround Letter. 

Company	Recommended Issue	Price @ Recommendation	Current Price	Change
Qwest	November 2008	$2.74	$4.86	77%
Teradyne	December 2008	$3.79	$6.81	80%
Flextronics	January 2009	$2.27	$4.11	81%
Terex Corp.	February 2009	$12.57	$16.37	30%
Tyco International	March 2009	$20.05	$26.09	30%
Walt Disney	April 2009	$19.06	$24.71	30%

The Turnaround Letter focuses on companies that are temporarily out of favor but are in the process of turning around.  My friend, George Putnam, editor, The Turnaround Letter, gets into investments before the good news is out, when prices are at their lowest and profit potential is at its highest.

The best time to own turnaround situations is when the economy and stock market are in recovery, and we're seeing strong evidence of this now.  The average annual return for the 3 years after the 1990 and 2001 recessions: 48.8%! All stocks look like turnaround opportunities right now, but many are going to wallow at current prices for a long time while others will possibly double or triple in value--maybe much more.

It has certainly happened before...

In November 2002, George Putnam recommended a well-known tech stock to the readers of his newsletter, The Turnaround Letter. It was a stock that had burned most of the brokers and analysts on Wall Street pretty badly as the tech sector crashed.

Everyone hated this stock. Contests were being held on the Internet to guess the date the company would declare bankruptcy. Wall Street had officially declared it "out of favor."

But that's exactly the sort of stock George loves to take a second look at . . . beaten up best stocks to buy that no broker dares to recommend. Stocks flying low under the radar but to a contrarian's eye, poised for a potential turnaround.

George discovered that this famous company had a dedicated core of customers who loved its products and actually had a good balance sheet. Even though its computer products were a little stagnant, they had recently launched a product called . . . the iPod.

In the November 2002 issue of The Turnaround Letter, George said BUY APPLE at a split-adjusted $7.82! His readers did and rode the profit wave of the revolutionary iPod. As most of us know all too well, Apple and its iPod--and now iPhone--is perhaps the most amazing corporate turnaround of our age.

Even after the bear market, Apple, near $130, is still up 1,600% from George Putnam's buy price in The Turnaround Letter. 

By the time brokers began looking at Apple again most of the big gains had already occurred and were in the pockets of George's very happy readers.

Click here to get George's NEW Special Report: 4 Losers You Should Love

George's simple investment philosophy is this: You never make money buying the easy stocks the Wall Street herd buys. You see, brokers tend to recommend stocks to the herd when they are 100% sure they are going back up.

But that's not the way George does it. He does the opposite - a true contrarian. He looks for stocks going down and waits for them to turn around. Then he recommends them, before the herd, before the big moves, before the profits start piling up.

That's why today's market is a mother lode of profit opportunity for the turnaround investor. Stock prices are at a real value today . . . if you know which stocks to buy!

Click here to subscribe and obtain George's latest Turnaround buys.

In 24 years of trading in these distressed and beaten up hot stocks market, George knows that looking at a stock's price history is no way to make a purchase decision. (But that's what many brokers and analysts do!) But George knows that it is more important to concentrate on future business prospects.

That's why serious turnaround investors always look for a stock that has severely declined in spite of it being a solid company with positive business trends to show for itself, i.e., core business health . . . positive cash flow . . . debt restructuring . . . change in management.

Start your subscription today! Mainstream investors rarely dump a stock for "no reason," so the trick is to find a situation where their concerns are faulty or shortsighted. This is what George calls the "inefficient niche."

Since the stock market is by nature efficient, the market bias against these turnaround stocks is extreme (or inefficient), and the company's true financial information is not being processed accurately.

In fact, investors' outlook is so pessimistic on our current markets that inefficient niches are opening up faster than ever. The investors are so glum that they just can't believe that a stock that has taken a tumble is really going to turnaround. Brokers, most investors and Wall Street are just plain afraid of these beaten up stocks . . . regardless of the company's actual financial situation. Their good judgment is simply skewered by bad news and uncertainy about the economy.

But this is where George swoops in and yells BUY! And his readers profit . . . many with triple digit profits such as:

ENSCO +470%
Veritas DGC, Inc. +286%
McDermott Int'l +205%
El Paso Electric +265%
KCS Energy +175%
Loews Corp +152%
Service Corp +189%
Allstate +168%
Korn Ferry International +178%
Kaman Corp. +151%
Syms Corp. +149%

You can too. You'll find great turnaround bargains at low prices each month in The Turnaround Letter. Click here for immediate access to the latest issue of The Turnaround Letter.

Plus you'll have access to George's past issues as well.

The Turnaround Letter contains a wealth of information at your fingertips for only $59 for 3 months or $195 per year. Each issue is straightforward and easy to read with clear buy, hold and sell recommendations. Sign up now.

George is currently following 50 top stocks to buy in three portfolio sizes: small-, mid-, and large-cap stocks. But each month, he offers up to 20 BUY recommendations with his reasons clearly explained.

Click here to get George's NEW Special Report: 4 Losers You Should Love 

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More Turnaround Success Stories...
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Just so you're clear about George's success in picking these triple digit profit stocks, here's two more turnaround success stories: energy drilling concern Parker Drilling and retail giant J.C. Penney!

In the case of J.C. Penney, its stock had dramatically fallen down to $19.71 in March 2002 when George recommended it as a BUY. Wall Street was staying clear of retail and J.C. Penney in particular. J.C. Penney was considered overextended in its debt structure. It received the Wall Street snub.

But George saw BIG turnaround potential. J.C. Penney had just brought in a new management team who immediately began improving the balance sheet. (George's rule of thumb - old management can't solve the old problems they created. New fresh ideas are needed.)

The new team sold off Penney's catalog business and their drugstore business - two non-core businesses that were having a fatal drag on their solid but suffering retail outlets. They also centralized management and closed retail stores in towns where sales had declined.

The result . . . J.C. Penney's stock turned around. In May 2005, George told his readers to sell for a 149% profit!!

In the case of Parker Drilling, the Houston company had fallen on hard times by 2002 when more than 75% of its capitalization was in the form of debt! Putnam figured that the company was still a premiere oil and gas driller and also predicted that the prices of crude and liquified natural gas would drive company growth here and overseas. In November 2004 George told his subscribers to buy the stock at a beaten up $3.85. Less than three years later his subscribers took profits when Parker's stock hit $11.35. A gain of 195%!