Triage

I’m still working through my portfolio, but I have categorized some stocks:

The Dead — Companies with bad balance sheets, but have been whacked so bad that it is still worth playing

  • Jones Apparel
  • Deerfield Capital
  • YRC Worldwide

Walking Wounded — Companies with okay balance sheets that we feed more cash to

  • Lafarge
  • Industrias Bachoco

Seemingly healthy that might have financing problems — Sold

  • Lithia Automotive
  • Group 1 Automotive

Uncertain as of yet

Barclays plc

Safe New Names Bought

  • PartnerRe
  • Microcap yet to be named when I have my full position on.

More tomorrow. As you can tell, I am positioning my broad market fund more conservatively. I am not optimistic on how we work through the amalgam of debts that might not get paid.

Full disclosure: long PRE IBA DFR JNY YRCW BCS LR