Great turnaround stories are NOT everywhere.

Sure, you hear about potential turnarounds, but how many really pan out? And do you have the patience to wait and see what happens?

A turnaround occurs when a company experiences a long rough patch, sets in motion a plan to turn itself around and then delivers on its promise.

And while this is rare, the rewards of a successful turnaround can be nothing short of spectacular.

Here are eight signs to look for to spot a GREAT turnaround:

1. Radical transparency. Management has to be honest about the issues at hand. Many managers hide their heads in the sand and hope the situation will improve on its own. It rarely does. Most times, it gets even worse.
2. People want the product. The company must have products people want to buy, and it must have a pipeline of NEW products that will excite people for the future. There’s no point in trying to resurrect VHS rental shops or floppy disks!
3. New sheriff in town. If the existing management team has no vision or has failed to execute its vision, the company must make a change in leadership.
4. Cash is available. Access to capital is critical. A turnaround takes time and money – especially if the company’s entire business model needs to be turned upside down.
5. A clear strategy. Hindsight is great, but foresight is better. If management cannot articulate a strategy, then there isn’t one. End of story. End of turnaround.
6. A proven track record. The company has to have a history of big performance. The shareholders need to know that the new iteration of the company can regain its former glory. After all, what’s the point of being in a stock if there’s no potential for a huge payout?
7. The price is right. The share price must be at a level where the new shareholders will stand to make HUGE money if the turnaround succeeds.
8. Management is invested. Insiders must have a stake. If they are putting money in, then they have skin in the game too.

YOUR ACTION PLAN

Finding a turnaround story that meets some of these criteria is hard enough. But finding one that meets all of them is like finding a unicorn.

That’s why I’m excited to say I’ve found a company that meets ALL eight catalysts listed above. Our Trade of the Day Plus members are already getting the story, and you can find out more by joining today.

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