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.

7 thoughts on “Begin the Fourth Quarter Reshaping

  1. Take a look at HIMX. Not the most timely stock, but I’m not sure a lot of stocks are right now.

    I own a tiny position.

  2. Mr. Merkel:

    Can you explain (at the high level) how you rank sectors and how you screened for that enormous list?

  3. Do you think the market is bottoming and oversold… or could we waterfall… all week we have been chatting about this on my investors place …. what do you think… thanks

  4. David,

    I’m not sure if you had included any of these types of positions, but it seems to me as though agency closed end funds might be a good buy here; FNMA, FRMC, and GNMA are all trading at very wide spreads to Treasuries, which seems a bit much given the now explicit guarantee. And closed-ends are trading at very wide discounts generally, on the equity side. I’m not sure which particular closed-ends are attractive, but you might know. Interesting idea, anyways, I think.

    Steve

  5. Pingback: The Market Traders

Comments are closed.

Theme: Overlay by Kaira