Investing In Turnaround Stocks
June 20, 2019 Leave a comment
Turnaround stocks are stocks of companies that have gone through a phase of weak financial performance and whose share prices have been beaten down,but are likely to rise again as companies change their business strategy to become profitable again.
Now,if you are the bargain minded sort,you are bound to be attracted to this idea of identifying gems going cheap,holding them long,and having your wisdom and foresight validated by tidy profits …..!
But do contain your eagerness and look before you leap.Investing in turnaround stocks can yield spectacular returns to investors willing to buy into them when there literally seem be few takers and hold on,but then again wrong calls can lead to permanent loss of capital when the anticipated turnaround doesn’t happen or gets stalled. Read more of this post
Back in April 2018, when I read the press release from Cognizant about having teamed up with a consortium of fifteen Indian life insurers and developed a blockchain solution to facilitate cross-company data-sharing to help these life insurers reduce their reliance on data intermediaries and aggregators in obtaining customer and policy details for a wide range of critical purposes, such as know-your-customer due diligence, financial and medical underwriting, risk assessment, fraud detection, and regulatory compliance, I was FURIOUS.
Blockchain is a shared, distributed ledger with non-repudiation of transactions that can work in the absence of trust across a peer-to-peer network. Blockchain technology has the capacity to deliver wide-ranging benefits to humanity that are obfuscated by the charged debates on cryptocurrencies these days. Applied to insurance,blockchain technology opens the door to many positive developments for consumers,such as: 
Currently the health and life insurance products we buy are static in the sense that right at the beginning of the policy term the insurance company makes an assessment of the morbidity or mortality risk of the person and then agrees to insure them at agreed-upon rates.
The mortality risk is not the same across different sections of the population.So one of the ways in which life insurance companies have traditionally competed is by restricting their offerings to people who have lower risks of dying early and thus keeping premiums lower and/or bonuses higher.The classic example is the Postal Life Insurance plans of the past that were offered exclusively to government servants vs similar plans of the LIC that were open to all. In more recent times,insurance companies target the more educated, affluent, urban ,financially successful professional/managerial class with better living standards and access to world-class healthcare.
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