It takes nerves of steel, an iron stomach and a ton of patience to invest in turnaround stocks, a dicey corner of the market populated by firms that have a viable strategy to improve their business.
Most investors shun these stocks, so you're moving against the crowd. And these corporate makeovers can take years; in the meantime, the shares languish. So why bother? Because if the company succeeds in its turnaround, the payoff can be big.
