Begin the Fourth Quarter Reshaping

Here we go again.  Once a quarter, I gether together the ideas that I have gathered from the last three months, so that I can consider them as replacements for companies in my current portfolio.  Here are the initial candidates:

AAUK    ABC    AE    AGNC    AHS    AIB    AIMC    AIQ    AKLE    AKO.B    ALJ    ALV    AMAT    AMN    AMOT    AMX    APA    APD    ARG    ATPG    AUO    AXP    AZZ    BBSI    BHE    BRNC    BTM    BWS    CIG    CNH    CNMD    COMS    COP    CPOG    CPX    CRESY    CTGX    CVI    DAC    DAI    DAN    DCM    DDS    DE    DIT    DPS    DVR    EROC    ETH    EXH    FCS    FLR    FRZ    FWLT    GD    GIB    GIGM    GIII    GLT    GNW    GRMN    GSK    GT    GVA    HANS    HAWK    HD    HDNG    HES    HOC    HRZ    HURC    IAR    IP    IPAS    ISYS    JAH    JMHLY    JOS\B    JOYG    KHD    KLAYN    LCRY    LII    LINC    LINE    LOGI    LONG    LOW    LSR    LWSN    LYTS    MC    MDR    MF    MIDD    MLM    MOV    MRO    MRX    MWA    N    NCS    NFX    NGLS    NLC    NOK    NOV    NSRGY    NTGR    NTL    NTT    NUE    NYX    OME    OMI    ORBK    OTEX    PARL    PBR    PCP    PCR    PDLI    PHG    PII    PKX    PLCM    PLUS    PNX    PQ    PRDT    PRE    PRU    PTP    PWR    PX    RAME    RDS.A    RE    RHD    RIG    RIO    SB    SCHN    SCL    SCX    SDXC    SGY    SHLO    SHS    SM    SMCI    SNX    SNY    STX    SU    SUN    SYNL    TAR    TEL    TEO    TEVA    TEX    TFCO    THRX    TKTM    TMB    TNE    TOT    TRID    TRMA    TRS    TRV    TSO    TTM    UFCS    UFS    UPL    USAK    VMC    VMW    VQ    VRS    WERN    WES    WEYS    WINN    WMW    WNI    WRB    WST    WTS    ZNT    ZZ

Now, what have I done in the recent past, aside from losing more money than the S&P 500?  The following transactions:

Rebalancing Buys: ESV DVN IBA KPPC MGA VLO HIG (twice) LNC XEC SFD AVT NTE YRCW CHIC GMK HMC (twice) SBS OMX TNP

Rebalancing Sales: RGA/A YRCW GPI NTE CHIC

Complete Sales: GPI SFD MET RGA/A IRF

New Buy: RGA/B

I sold International Rectifier because of the bid from Vishay.  I would buy more Vishay, except that I fear their bid could succeed, and financing a cash deal in this environment, so large for them, would be a disaster.  I sold Group One and Smithfield for balance sheet reasons.  Metlife I sold because I needed to lighten up in asset sensitive life insurance; I sold the one that I felt could get hurt the worst in a prolonged slump.  FInally, I swapped RGA/A for RGA/B, getting the lesser voting shares at a decent discount.   It is possible that the two classes will be unified at some point, or, that RGA could be bought out, and the B shares would do better than the A shares in such a situation.

THe next article n this series will be on my industry model and ideas for there, but if you have ideas that I should consider, add a comment, and I will throw the idea into the hopper.