How do you know if a turnaround will turn? I know there's a Buffett quote about most not turning but some do, and when they do the investor who bought when things looked bad stands to make a lot of money. Sometimes there may be some pretty good signs one way or the other but many times you are just not sure. Sometimes the best you can do, if you want to invest in this space, is look at the incentives and possibility then give them a chance. Does the company have a clean share structure? Do they have assets they could sell if need be? Is management invested? Is the whole industry dieing? How's the debt?
I'm sure many who read this will call it a falling knife and that's fine. It has been falling but there are positive signs as well. We'll see how it works out.
So let's talk about Forward Industries (FORD).