How to spot a 'turnaround stock'

A stock that's fallen on hard times is spurned by investors. But if it can get its act together, it can offer unbeatable value, says Tim Bennett. Here are three ways to spot a potential turnaround play.

The stockmarket is pretty brutal. When companies that come to the market in a blaze of glory start to underperform, investors lose interest and their share prices get hammered. But it's often a mistake to ignore these fallen angels'.

They may not attract the media spotlight too often, but when they get their act together they can offer the Holy Grail of good performance at a cheap price as a result. Here are three ways to spot a potential turnaround play.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.