Have You Ever Tried a Turnaround Strategy in Stock Investing?

[Suba]

A turnaround is a strategy often used by investors to find and purchase undervalued stocks. Investors look for companies experiencing financial difficulties or even near bankruptcy, but with the potential to recover and demonstrate strong performance.

This turnaround strategy is ideal for stock investors with an aggressive risk profile, promising high returns but also high risk. Furthermore, investors must possess strong fundamental analysis skills to analyze company performance.

 

[Augusta]

This is a strategy where investors make an entry when companies restructure and address problems that have caused their decline to gain success

 

[Starmix]

No, I haven't tried it. It might be risky. I am also new to stock investing. My knowledge and skill in it is still amateur, I might experience it when I am already a veteran investor with a huge capital.

 

[Augusta]

One can use this method for enhancing operational efficiency and reducing costs.
Strengthening competitive positioning and market share.

 

[Stardom22]

For me this is the very first time l am hearing about that strategy for sure. I think it's a wonderfully strategy that can help one to reap so much.

 

[Suba]

If we are interested in implementing a turnaround strategy, to make a profit, we must be patient and not panic easily. This strategy is long-term oriented with an uncertain timeframe, so we must use idle money, determine a cut-loss or stop-loss, and ensure the issuer has strong fundamentals.

 

[Tobi]

The usual first focus is cost cutting - and nothing wrong with that except that it isn’t a turn around strategy, just survival. The key to a turn around strategy is understanding where your marketing and sales has gone wrong. That’s where I always focus when I am giving this advice or when I am engaged in developing business for a company that has to turn itself around

 

[Augusta]

Turnaround stock is a company's stock whose underlying fundamentals such as sales, revenue, cash flow, etc. have declined for a period of time but investors believe the company still has the potential to "turn around