Logic

Gome Electrical Appliances Holdings: Easy 35% Upside Potential On A SOLID Turnaround

Turnaround Plays

Turnaround plays are often some of the most rewarding stock picking strategies. This strategy was popularized by Peter Lynch in his famous book "One Up on Wall Street" (often a must read for new analysts to Wall Street). Turnaround plays are characterized by stocks that are battered down, forgotten, and/or hated stocks by the street that made an internal change to reverse its fortunes (the change is independent to the industry or economy getting better).

One can imagine a turnaround as a pendulum has been held to one side long enough by the market (due to its poor business operations). Once that market force is released (as they realize the turnaround), the rebound can be tremendous. It is...

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