Sunday Research Pipeline Session #2 – A Highly Leveraged Turnaround Trading at a P/E of 2x

Watching to see if the ongoing deleveraging will begin to make a dent in the company's massive debt load.

To view the performance dashboard for all stocks highlighted in our Sunday Journal, visit this link.

I have been casually watching this turnaround story for a couple of years and have had a hard time getting comfortable with making an investment. However, the company’s most recent quarterly financial results caught my attention. So, I have moved the stock up a notch on my watch list.

Deleveraging turnaround stories can offer great set-ups that lead to meaningful upward revisions in valuation multiples. And with shares trading at a meager run-rate P/E of 2x, there could be plenty of re-rating to go around if management’s turnaround succeeds.

Here is my research journal note: