The corner of the private equity sector focused on distressed investment opportunities has a considerable amount of cash on the sidelines. Distressed debt funds lead the private equity industry in terms of dry powder, followed by special situation and turnaround funds, according to alternative investment research firm Preqin.

Though global dry powder has fallen from its worldwide high of $59.9 billion in December 2007, its January 2010 level of $42.5 billion is still far above the $18.7 billion reached in December 2004. This does represent a decline of 29% from the 2007 peak, but the dry powder levels remain robust.

"Global Crossing (NASDAQ: GLBC) was started in 1997 to build a worldwide fiber optic cable network, with the strategy, 'if you build it, they will come'," says George Putnam, adding, "But as the telecom bubble burst around 2000, nobody came."

Now, in his always-excellent The Turnaround Letter, the advisor suggests, "We think the current stock price gives you the opportunity to buy into a very valuable communications network at a tiny fraction of its original cost."

"The new stock went as high as 36 shortly after it began trading after its bankruptcy. When it later dropped in price, several high-profile investors accumulated sizable positions.

"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.

Intel Corp. (NASDAQ: INTC) came out Monday night and warned of lower margins, and while the stock was down in after-hours trading, one might actually make the argument that this might not be such bad news for its core operations. It's just hard to be too much like Dr. Pangloss in what looks, feels, and even smells more and more like a bear market each week. The culprit is listed as "lower than expected NAND flash memory chip prices." So Intel said it is now looking for 54% margins, plus or minus 1%. Its previous guidance was 56%, plus or minus 1%. What is at least a bit of relief here is that Intel said that all other expectations are consistent with the prior guidance given with its last outlook.

I would note that Intel had recently been downgraded at Goldman Sachs and at AmTech. Arguably, this is the second warning if you count last quarter. Its 2% drop is fairly appropriate as that is basically how much the stock is down on the news. Intel closed up 0.2% Monday at $20.01, but it was now seeing shares trade down 2.5% at $19.51 in after-hours evening trades.

If you take this at face value, Intel at least has a robust processor business, or at least it has the best processors in the industry. This news is taking a toll on other semiconductor stocks as well, but as the news bit is specific to NAND flash memory chips, it is hitting those flash memory stocks the worst of the others.

Micron Tech (NYSE: MU) is one that won't be liking this as its turnaround seems to be in jeopardy. This may at least make the company pursue more active issues like divesting some assets. SanDisk Corp. (NASDAQ: SNDK) is perhaps the pure-play for flash memory stocks, and its shares were actually down almost 3.5% at $22.25 in after-hours trading. That was after already hitting a new 52-week low at the close of $23.05 as its trading range over the last year was $23.40 to $59.75. Spansion Inc. (NASDAQ: SPSN) is another go-to stock in flash memory. Its shares were down almost 3% in after-hours trading at $2.82 after having an almost 6% gain today. Unfortunately, it has had a poor year with its 52-week trading being $2.69 to $12.83.

It is an odd company that says its turnaround is "on track" when market share in its home company and largest market is falling like a rock. But, so say Ford Motor Co. (NYSE: F) management.

"The closures and the employment reductions to size the capacity to the real demand -- we're a little bit ahead," Ford's CEO told reporters. "But generally (we're) on plan."

Ford has a couple of other cards in the hole. It will probably improve its balance sheet by several billion if it can sell its Jaguar and Land Rover units. And, upcoming UAW contract negotiations may give Ford the chance to beg off pension and benefits cost cuts. But, the point will come when Ford's recovery is measured by a need to spend more money to help improve production for rising sales.

But, a turnaround is not a turnaround without some stability in revenue, and Ford has been unable to show that. Its most profitable vehicles are its SUVs and pick-ups, and the sales of those are running down by double digits most months.

Measuring progress by cost cutting is generally a Faustian bargain. The Devil eventually comes for the whole company.

Douglas A. McIntyre is a partner at 24/7 Wall St.

"Investors have shied away from the big telcos in recent years because of concerns that their traditional businesses were shrinking," notes George Putnam III, an expert in uncovering turnarounds.

But now, he explains, "After years of concern about the cable companies invading their turf, the big telecoms are now well positioned to fight back."

In his The Turnaround Letter, the advisor looks at seven leaders in the global telecom space, all of which he says represent global leaders, with dominant positions in their local markets and the "potential to grow steadily by expanding the services they offer."

AT&T (NYSE: T) Putnam notes, gained control of Cingular Wireless due to its merger with Bellsouth. The renamed AT&T Wireless, he says, will account for about 35% of AT&T's revenues.

The advisor observes, "In addition to a strong wireless presence, AT&T is rolling out fiber-based landline services. With revenues expected to be north of $120 billion in 2007 and substantial operating cash flow, AT&T is a force to be reckoned with." Further, he notes, the dividend was just raised for the 22nd consecutive year, and the company is expected to repurchase roughly $7 billion worth of stock in 2007.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Western Union (NYSE: WU) is the top conservative pick for 2007 from Cory Janssen. In the Investopedia Advisor, he explains, "Spun off from First Data Corp. in October, Western Union is an outstanding company to own as a long-term holding.

"Its powerful brand recognition gives it a critical advantage in an industry where customer trust is of such high importance. As well, the company's enviable distribution network leaves it very well-positioned to capitalize on the ongoing growth in international money transfers.

"The business does face some short-term risks. Recent political debate surrounding U.S. immigration policy has prompted a decline in the frequency of money transfers from the U.S. to Mexico, and this has weighed on the company's recent quarterly numbers. We feel that this is a temporary blip.