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
- Industrias Bachoco
Seemingly healthy that might have financing problems — Sold
- Lithia Automotive
- Group 1 Automotive
Uncertain as of yet
Safe New Names Bought
- 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