"Even when the market is up a lot, you can always find some good stocks that have been left behind but could be on the verge of a rebound," says George Putnam.

The editor of The Turnaround Letter explains, "That's where we suggest you focus your efforts right now. These eight stocks all have strong business franchises and have all significantly lagged the market over the last two years.

"In fact, several of them are still trading near or even below where they were in early 2009. Here, we look at Bank of America (BAC), Best Buy (BBY), Campbell Soup (CPB), Cisco Systems (CSCO), Microsoft (MSFT) and Sprint Nextel (S).

"MGIC (MTG) is the leading U.S. private mortgage insurer; in fact, the company claims to have founded the mortgage insurance industry in 1957," notes turnaround specialist George Putnam.

The editor of The Turnaround Letter explains, "After many years of relatively steady earnings, MGIC was forced to sharply increase its reserves beginning in 2007 as more homeowners began defaulting on their mortgages.

"As a result, the company posted large losses in each of the last three years, which reduced its capital to a precarious level. Almost all of the other mortgage insurers suffered similar fates, with several competitors being forced out of business.

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"Founded in 1938, Owens Corning (OC) -- my top pick for 2011, is a leading manufacturer of building products, including insulation, roofing products, and composite materials," says George Putnam.

The editor of The Turnaround Letter explains, "The stock looks quite cheap, particularly for a company with such a strong business franchise in a temporarily depressed sector.

"Founded in 1938, Owens Corning (OC) is a leading manufacturer of building products, including insulation, roofing products, and composite materials; the stock looks quite cheap, particularly for a company with such a strong business franchise in a temporarily depressed sector," says George Putnam.

The editor of The Turnaround Letter explains, "From the early 1950s through the early 1970s some of the company's insulation products contained asbestos.

"This led to massive legal liabilities in the 1990s, which forced the company to file for bankruptcy in October 2000. Like most of the asbestos-related cases, Owens Corning's Chapter 11 proceedings were protracted and contentious.

"Silver stocks are exploding upwards; one beneficiary is Coeuer d'Alene Mines (CDE), a classic turnaround story," says Mark Skousen.

The editor of The Turnaround Letter explains, "Despite the recent run-up, still is selling at a 60% discount from its high of $60 a share back in 2006.

"Although it was founded in 1928 and is one of the oldest silver mines in the famed northern Idaho panhandle, it's been a money loser for years and heavily in debt.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Global Crossing (GLBC) was started in 1997 to build a worldwide fiber optic cable network; revenues grew very slowly, and the company was forced to file for Chapter 11 in January 2002," explains turnaround specialist George Putnam.

Now, however, the editor of The Turnaround Letter suggests, "The potential of that network is finally beginning to be fulfilled."

"We all know that, despite the big run-up recently, many stocks are still below their highs of a year or two ago," observes turnaround expert George Putnam.

In The Turnaround Letter, he suggests, "But what about some of the biggest, best known and best managed companies that are trading below where they were ten years ago? That's pretty tempting to us." Here, he looks at eight stocks that can now be bought at prices below their 1999 highs.

"Sure, late 1999 was the last gasp of the Internet bubble, and so that explains some of the tech names. But our list includes retail, beverage, entertainment, drug and other low-tech businesses.

"Being contrarians, we are always looking for laggard stocks with the potential to rebound," says turnaround expert George Putnam.

In his The Turnaround Letter, the advisor reviews four medical and pharmaceutical stocks that have been among the worst performers in the S&P 100 since the market bottom. Despite their poor performance, he thinks they may be due for a rebound.

"We think that investors who got left behind by the first leg of the market rally are struggling to catch up.

"Even among the broad-based market carnage of the past year, regional banks with heavy real estate exposure have been notably poor performers," notes turnaround expert George Putnam.

In The Turnaround Letter, he explains, "While investors are still wary of this group, there are cases where the market has overreacted and the stocks will eventually rebound dramatically." Here, he looks at four favorite regionals.

"Many regional banking stocks are now trading at a small fraction of their 'book value.' In more normal times, most banks will trade for two to three times book value and sometimes more.

"Despite coming close to bankruptcy in 2002, Williams Co. (NYSE: WMB) has some of the premier assets in each of its business segments: exploration & production, mid-stream and pipelines," says turnaround expert George Putnam.

In his The Turnaround Letter, he explains, "The company now has the financial strength not only to survive the current downturn but to grow and prosper."

"Begun in 1908 as a pipeline construction company, Williams is now a major, integrated natural gas company; it produces, gathers, processes and transports natural gas throughout the United States.

After the airline went through bankruptcy twice, turnaround expert George Putnam now sees improving long-term prospects for US Airways (NYSE: LCC).

In his The Turnaround Letter, the advisor suggests, "When travel does begin to pick up again, US Air with its lean cost structure should profit handsomely." Here's his review.

"US Airways began in 1939 as All-American Airways delivering mail to Western Pennsylvania and the Ohio Valley; from there it grew through acquisitions to be a major national airline.

"Walt Disney (NYSE: DIS) is arguably the most prominent entertainment operation in the world today, with one of the world's most recognized brands across all of its major business segments" says George Putnam.

In The Turnaround Letter, he observes, "We believe that the current market volatility and economic weakness provide an opportunity to buy into a preeminent global brand at a temporarily depressed price."

"Disney controls theme parks, such as Disneyland and Disney World; television networks, including ABC and ESPN; movie studios, and character-themed consumer products.

"While the company's financial results have been hurt temporarily by the global economic weakness, we believe it is well positioned to prosper again when economic conditions improve.

"Many experts believe that oil prices are at unsustainably low prices now, and they expect a sharp rise in the commodity price as supply and demand come back into line again," says turnaround expert George Putnam.

In The Turnaround Letter, he suggests, "If oil does begin to rise again, the oilfield service stocks could rebound sharply." Here, he takes a look at large cap plays on a rebound within the oilfield services sector.

"We all know that oil prices have fallen dramatically from their highs in the summer of 2008. But different types of oil-related stocks have reacted quite differently to the price change in the underlying commodity.

"For example, while oil itself has dropped nearly 70% from its 12-month high, the stock of the largest integrated oil company, Exxon-Mobil (NYSE: XOM), is down only 26%, less than the stock market as a whole.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

George Putnam is the newsletter advisory industry's leading authority on distressed stocks and turnaround situations. In his The Turnround Letter, he looks to semiconductor firm Teradyne (NYSE: TER), his top 2009 pick.

"Founded in 1960, Teradyne is the leading maker of automated semiconductor testing equipment. It also produces testing equipment for circuit board assemblies, aerospace and defense instruments, and automotive systems.

"The current short-term prospects for the semiconductor industry are weak, and so many of the chip stocks are down hard. Testing is a key element of semiconductor production, and so the testing equipment producers will prosper when the chip makers rebound.

"Teradyne has been the dominant player in the semiconductor testing market for quite a while and over the last couple of years the company further solidified its leadership position by acquiring competitors and buying back stock.

"Investors have been focusing on the shortcomings at Qwest Communications International (NYSE: Q), and to be sure, it has plenty," observes turnaround specialist George Putnam.

In his The Turnaround Letter, he adds, "But the company also has very valuable assets and strong cash flow. In addition, we believe the stock would command a good premium in a takeover." Here's his bullish review.

"Following its IPO in 1995, Qwest expanded via acquisitions and partnerships, and participated in the telecom bubble of the late 1990's.

"Unlike many of the other high-flying telecoms of that era, however, Qwest realized that in addition to a story you needed customers. In 2000, it went out and acquired US West, which gave Qwest the revenue base to survive the bursting of the telecom bubble

"Although the company survived, the shareholders have had a rocky ride during the current decade. The stock peaked around 60 in 2000, dropped to just above 1 in 2002, rebounded to 10 in 2007 and then declined to its present level.

"Management's challenge is too maximize the value of its assets. One of Qwest's greatest assets, and biggest challenges, is its huge traditional landline telephone business. The landline business is in a slow but steady decline as customers move to wireless or Internet telephony.