2018 TOP STOCK PICKS REPORT - The Best Stock and ETF Ideas for the Coming Year - The Turnaround Letter
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2018
The Best Stock and
TOP STOCK
PICKS REPORT
ETF Ideas for the
Coming Year
SPONSORS
2018 TOP STOCK
PICKS REPORT
Introduction
Each year for 35 years, our editorial team has surveyed the nation’s leading newsletter advisors and investment experts
asking for their favorite stocks for the year ahead.
This year’s report — Top Picks 2018 — features 100 investment ideas for the new year. The advisors who participate in
MoneyShow’s Top Pick reports are among the nation’s most respected and knowledgable investment experts.
Each has a time-tested reputation for in-depth research, integrity and a track record of long term investment success.
Most of these advisors have been participating in these reports for many years; indeed, many have participated for
decades!
If you are a reader of our free newsletter, you will be familiar with many of these advisors as they are ongoing contributors
to our Top Pros Top Pick — which offers a daily glimpse into the stock, fund and ETF recommendations of the nation’s best
financial newsletters.
We would like to emphasize to our readers that these annual reports are not contests. The goal is not to compile a list of
high risk, high-flyers (and potential big losers).
Each year’s Top Picks report certainly includes a variety of fast-growing stocks with high potential. But the report also
includes many conservative dividend-paying stocks and blue chips chosen for safe and steady returns.
This year’s report features ideas that range the gamut from out-of-favor value plays and turnarounds to growth stocks
on the leading edge of biotech, technology and social media. The report also features under-the-radar small caps to
some of the world’s most best known and iconic names.
From retail and consumer favorites to energy and commodities, from REITs and MLPs to manufacturing and industrial,
from healthcare to financials and ETFs, this report features intriguing ideas for investors of all stripes.
Our goal at MoneyShow — and the main objective of these leading advisors — is to provide you with a well-rounded
and diverse shopping list of investment ideas for you to consider as you build your personal long-term portfolios.
We caution that the recommendations presented in this report should be viewed as a starting place for your own
research. Any stock you buy should match your own investment strategy and time horizon — and fit you personal levels
of risk tolerance. Thank you for being a part of the MoneyShow family. We wish you the very best for investment success
in 2018.
Kim K. Githler | Chair & CEO
www.MoneyShow.com 12018 TOP STOCK
PICKS REPORT
2018 Top Stock Pick: General Electric (GE)
Our top conservative, income-oriented idea for for 2018 is General Electric (GE), asserts
turnaround specialist George Putnam, editor of The Turnaround Letter.
While former chairman and CEO Jeffrey Immelt’s early years at the helm were full of
promise, his 16-year tenure will be remembered for GE’s near-collapse in the 2008
George Putnam financial crisis, the dismantling of the company’s financial services operations, its
The Turnaround Letter cash-draining share repurchases and dividends, poor governance and weak operating
results.
This past summer, GE was thrown into disarray with an abrupt change-over in
leadership and the recognition that its cash flows were much weaker than previously
believed. As a result, investors fled from GE shares, which have declined 45% this year
and now trade at their 1997 price level.
The company clearly has problems, but disarray does not mean “game over.” New CEO
John Flannery is aggressively reshaping GE’s underlying philosophy to focus on cash
flows, capital allocation and accountability.
His strategy should improve the company’s core profitability and highlight the value of
its various businesses.
Three divisions will be retained (Power, Aviation and Healthcare), which have strong
market positions and large installed customer bases. As much as $20 billion in non-
core operations will be divested.
Flannery’s resolve is highlighted by his gutsy decisions to halve the dividend and
remove half of the board members. While the turnaround will likely take a while, the
rebound potential in the stock is significant, and investors are being paid a 2.8% yield
during the wait.
Subscribe to George Putnam’s The Turnaround Letter here…
www.MoneyShow.com 402018 TOP STOCK
PICKS REPORT
2018 Top Stock Pick: Weatherford International (WFT)
Our top speculative pick for 2018 is Weatherford International (WFT), one of the largest
providers of drilling services to the global oil and gas industry, notes George Putnam, editor
of The Turnaround Letter.
While its field-level capabilities have always been respected, the company had become
George Putnam an organizational jumble of businesses thrown together by the whims of its dominant
The Turnaround Letter former CEO. Not only did this produce a remarkably inefficient company, it also led to
a mountain of debt.
When oil prices collapsed a few years ago, Weatherford’s survival was threatened,
leading to the CEO’s departure in late 2016.
The arrival of new CEO Mark McCollum in March 2017 launched Weatherford’s revival.
Previously the CFO of industry giant Halliburton (HAL), McCollum is highly regarded
and very capable.
His priorities are generating cash to pay down $2 billion or more of the company’s $8
billion of debt, integrating and standardizing the vast sprawl of products and services,
and improving accountability and discipline.
One notable goal: cutting overhead costs as a percent of revenues by nearly half. The
company anticipates reaching break-even free cash flow in the current quarter after
years of cash outflows.
Other near-term catalysts include the innovative OneStim joint venture with
Schlumberger(SLB) and the sale of the international drilling rig operations, producing
as much as $800 million in combined proceeds.
Weatherford’s shares currently trade at eight-year lows. This turnaround will take
time and progress could be lumpy, but Weatherford’s shares have tremendous gain
potential from their current low level.
Subscribe to George Putnam’s The Turnaround Letter here…
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