Advanced Micro Devices, Inc. (AMD): The Turnaround Portfolio for Young Investors (Part II)

Page 1 of 2

Both younger and older investors enjoy some benefits that their counterparts don’t. Older investors tend to have more money to invest, but they are closer to retirement so they have to be a little bit more conservative about their investments than younger investors. On the contrary, while younger investors tend to have less money to begin with, they have more time to recuperate any losses they may sustain during their investment journey, which allows them to make some riskier decisions. The portfolio I’m suggesting here might be suited for younger investors in their 20s and 30s. The portfolio consists of well-known, established companies with a long history of success that are in the middle of turnaround efforts and can possibly result in great returns when and if their turnaround is successful. This is the second part of my article on the portfolio.

Advanced Micro Devices, Inc. (NYSE:AMD) : Since March of 2012, the company has lost 65% of its market value due to fears that the company was going to go out of business. The share price has stabilized over the last couple weeks and if this company can prove that it is here to stay, the share price can move up tremendously. There is a lot of competitive pressure from other chip makers in addition to the known troubles of the PC industry, but things can definitely get better over a long period of time. After all, PC is not going away anytime soon no matter how popular smart phones or tablets become.

BP plc (ADR) (NYSE:BP) : The company never really recovered from the effects of the Gulf of Mexico accident a couple years ago. Once the court cases conclude, BP pays the bill and finally moves on, things will be interesting for the investors of the company. Before the infamous accident, BP was trading for $60 per share, and it currently trades for about $40 per share, which provides a lot of potential upside for the investors who are willing to be patient in the long term.

IAMGOLD Corporation (USA) (NYSE:IAG) : In the last few years, gold preformed tremendously even though many gold miners have not. This is one of those gold mining companies that has been seeing sharp decline in its share price. Since 2011, IAMGOLD Corporation saw its market value fall by 67% and it trades for a low P/E of 7. This company can easily triple in a few years if the price of gold moves a little bit higher and investors start buying gold miners again.

France Telecom SA (ADR) (NYSE:FTE) : This company has suffered from a slowing EU economy, even though its operations are not limited to Europe. In the last five years, France Telecom lost 70% of its value due to European recession. Sooner or later, the European recession will come to an end, which will help this company rally. The company’s high dividend rate will also help its recovery. Before the European recession, this company was trading for $30 but it trades for $10 today, which means there is a lot of room for share appreciation for patient investors.

This company has suffered from two things, 1) the reckless behavior ofCEO Aubrey Kerr McClendon and 2) the sharp declines in natural gas prices in the US. The CEO will be leaving soon and natural gas prices will improve over time, especially once US companies start exporting it to other countries. This company has lost more than half of its market value in the last few years, and a successful turnaround would be very good for investors.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!