August 19, 2022

This note includes our review of earnings from Brookfield Reinsurance (BAMR).

There were no ratings changes or price target changes this week.

This will be a brief note this week. It’s been a busy earnings season and we’re on the road this weekend in upstate New York. My oldest son will be a senior in high school starting in a few weeks and is knee-deep in the college application process. Visiting a dozen or so schools is, of course, part of this process.

Earnings Updates

Brookfield Asset Mgt Reinsurance Partners (BAMR) – Recently spun out of highly regarded Canadian investment management firm Brookfield Asset Management, BAM Re is a new investment company that acquires the assets of and future contributions to pension plans and life insurance books. It invests these assets with the expectation that the returns will be significantly greater than the build-up in the related payout obligations. Over time, excess returns can build up considerable value for shareholders.

The company continues to build out its operations. In the quarter, Brookfield Re closed on its American National Group acquisition and seven pension risk transfer transactions, helping increase its investment assets to $27 billion. Adjusted equity rose to $3.8 billion from $1.3 billion a year. Distributable operating earnings increased to $46 million from $3 million, but this is mostly an indication of progress rather than any meaningful base for a valuation given that the company is still in its build-out stage.

Brookfield Re added a permanent CFO and a permanent Chief Investment Officer, both of whom are well qualified.

Friday, August 19, 2022, Subscribers-Only Podcast:

Covering recent news and analysis for our portfolio companies and other topics relevant to value/contrarian investors.

Today’s podcast is about 3 minutes and covers:

• Earnings reports
• Comments on other recommended companies:
  
  • Western Union (WU) – the CFO departs but we see this as a positive.
  • Walgreens Boots Alliance (WBA) – loses a $650 million opioid settlement. Will they settle under a master settlement agreement?
• Final note

Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at bruce@cabotwealth.com or to our friendly customer support team at support@cabotwealth.com. Due to the time and space limits we may not be able to cover every topic, but we will work to cover as much as possible or respond by email.

Please know that I personally own shares of all Cabot Turnaround Letter recommended stocks, including the stocks mentioned in this note.

Market Cap	Recommendation	Symbol	Rec. Issue	Price at Rec.	8/18/22	Current Yield	Current Status
Small cap	Gannett Company	GCI	Aug 2017	9.22	2.26	-	Buy (9)
Small cap	Duluth Holdings	DLTH	Feb 2020	8.68	10.18	-	Buy (20)
Small cap	Dril-Quip	DRQ	May 2021	28.28	24.49	-	Buy (44)
Small cap	ZimVie	ZIMV	Apr 2022	23.00	18.38	-	Buy (32)
Mid cap	Mattel	MAT	May 2015	28.43	24.10	-	Buy (38)
Mid cap	Conduent	CNDT	Feb 2017	14.96	4.43	-	Buy (9)
Mid cap	Adient plc	ADNT	Oct 2018	39.77	37.56	-	Buy (55)
Mid cap	Lamb Weston Holdings	LW	May 2020	61.36	82.07	1.2%	Buy (85)
Mid cap	Xerox Holdings	XRX	Dec 2020	21.91	18.99	5.7%	Buy (33)
Mid cap	Ironwood Pharmaceuticals	IRWD	Jan 2021	12.02	11.85	-	Buy (19)
Mid cap	Viatris	VTRS	Feb 2021	17.43	10.59	5.0%	Buy (26)
Mid cap	Organon & Co.	OGN	Jul 2021	30.19	30.73	3.5%	Buy (46)
Mid cap	TreeHouse Foods	THS	Oct 2021	39.43	50.06	-	Buy (60)
Mid cap	Kaman Corporation	KAMN	Nov 2021	37.41	34.73	2.6%	Buy (57)
Mid cap	The Western Union Co.	WU	Dec 2021	16.40	16.33	5.8%	Buy (25)
Mid cap	Brookfield Re	BAMR	Jan 2022	61.32	52.44	1.1%	Buy (93)
Mid cap	Polaris	PII	Feb 2022	105.78	122.45	-	Buy (160)
Mid cap	Goodyear Tire & Rubber	GT	Mar 2022	16.01	15.14	-	Buy (24.50)
Mid cap	M/I Homes	MHO	May 2022	44.28	46.90	-	Buy (67)
Mid cap	Janus Henderson Group	JHG	Jun 2022	27.17	26.40	6.3%	Buy (67)
Mid cap	ESAB Corp	ESAB	Jul 2022	45.64	44.79	-	Buy (68)
Large cap	General Electric	GE	Jul 2007	304.96	79.21	0.4%	Buy (160)
Large cap	Shell plc	SHEL	Jan 2015	69.95	53.69	3.9%	Buy (60)
Large cap	Nokia Corporation	NOK	Mar 2015	8.02	5.13	1.7%	Buy (12)
Large cap	Macy’s	M	Jul 2016	33.61	20.32	3.6%	HOLD
Large cap	Toshiba Corporation	TOSYY	Nov 2017	14.49	19.38	3.2%	Buy (28)
Large cap	Holcim Ltd.	HCMLY	Apr 2018	10.92	9.51	4.7%	Buy (16)
Large cap	Newell Brands	NWL	Jun 2018	24.78	21.15	4.7%	Buy (39)
Large cap	Vodafone Group plc	VOD	Dec 2018	21.24	14.58	7.1%	Buy (32)
Large cap	Kraft Heinz	KHC	Jun 2019	28.68	38.26	4.3%	Buy (45)
Large cap	Molson Coors	TAP	Jul 2019	54.96	56.12	2.9%	Buy (69)
Large cap	Berkshire Hathaway	BRK.B	Apr 2020	183.18	304.27	-	HOLD
Large cap	Wells Fargo & Company	WFC	Jun 2020	27.22	46.14	2.8%	Buy (64)
Large cap	Western Digital Corporation	WDC	Oct 2020	38.47	48.72	-	Buy (78)
Large cap	Elanco Animal Health	ELAN	Apr 2021	27.85	18.09	-	Buy (44)
Large cap	Walgreens Boots Alliance	WBA	Aug 2021	46.53	38.24	4.9%	Buy (70)
Large cap	Volkswagen AG	VWAGY	Aug 2022	19.76	19.89	3.8%	Buy (70)

Disclosure: The chief analyst of the Cabot Turnaround Letter personally holds shares of every Rated recommendation. The chief analyst may purchase securities discussed in the “Purchase Recommendation” section or sell securities discussed in the “Sell Recommendation” section but not before the fourth day after the recommendation has been emailed to subscribers. However, the chief analyst may purchase or sell securities mentioned in other parts of the Cabot Turnaround Letter at any time.Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at bruce@cabotwealth.com or to our friendly customer support team at support@cabotwealth.com. Due to the time and space limits we may not be able to cover every topic, but we will work to cover as much as possible or respond by email.