Case Study: How I Analyzed and Bought A Stock That Rose 500% : Starbulk Carriers

If you’re looking for a case study on how to find and analyze a turnaround stock that can turn into a 6 bagger (up 500%) watch my video here that was posted on youtube February 1, 2016. In this video, I analyzed star bulk carriers and formed a hypothesis that the shares could rise 1000%. The stock was trading at .50 a share at the time ($2 post reverse split) and subsequently rose to $13 a share in April 2017. It is now $12.

At the time, the dry bulk industry was in the midst of an industry depression. There was absolutely no hope and every analyst thought that it would take 3 years for the industry to recover. In addition, there was a fear that star bulk may be forced into chapter 11. Despite all the doom and gloom, I concluded the odds were good that star bulks stock could rise dramatically and prosper even with a large dilution. The video also highlights how I used the stock chart to confirm my fundamental analysis. You will also see how I created a pro forma ebitda table and analyzed the balance sheet to confirm my hypothesis.

The video has allot of lessons that can be used when you are analyzing a turnaround stock that is hated and trading at maximum pessimism. By combing sound fundamental and basic technical analysis it is possible to create wealth from just a handful of turnaround stocks.

If you’re interested in learning how to find, buy and manage a portfolio of turnaround stocks, consider becoming a premium member of turnaround Stock Investing