The Death of the Value Stalwarts

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If you want value, step into the world of Grace (GRA:NYSE - news - boards), Armstrong (ACK:NYSE - news - boards) and Federal-Mogul (FMO:NYSE - news - boards).

These are three companies that used to be the mainstays of dozens of mutual funds that like to buy good, high-quality growth companies that are levered to the economy. Now, since the revelation that Owens Corning (OWC:NYSE - news - boards) is not going to beat the bar -- the plaintiffs' bar, because of asbestos it sold years ago -- and instead opted for bankruptcy, these other companies are on a death march to zero.

It is incredible. There was a time not three years ago when great portfolio managers owned all three companies because they were too cheap to ignore. They are now cheap beyond belief. But the shocking bankruptcy filing of Owens Corning makes the possibility of bankruptcy protection filings for the rest too great for people to even go bottom-fishing. I am combing through this embattled trio looking for signs that they won't meet Owens' fate.

I haven't found any yet.

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James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at [e-mail].