In the following video, Motley Fool consumer goods analyst Blake Bos gives investors three must-have things for anyone basing an investment thesis in a company on a potential turnaround story. He gives us the mindset you should have going into the investment, tells us why the right management for the company is crucial, and gives us a look at why healthy free cash flow is vital. Then he applies these three ideas to three of today's most well-known possible turnarounds: J.C. Penney (NYSE:JCP), Best Buy (NYSE:BBY), and Radioshack (NYSE:RSHCQ).

Blake Bos owns shares of RadioShack. The Motley Fool owns shares of RadioShack. The Motley Fool is short RadioShack. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.