Getting Your Portfolio in Better Shape, Part 2

What I Sold

ABN AMRO (ABN Quote): Barclays may do the deal or not. ABN Amro is fully valued here, and then some.

Devon Energy (DVN Quote) and Apache (APA Quote): I like them both, but their valuations have risen, and I have other places to deploy money.

What I Did Not Buy

After this, I look from the top down for replacement candidates from the list. If I reject a highly rated name, I have to have a reason:

Group 1 Automotive (GPI Quote): I already have Lithia Motors (LAD Quote) and Sonic Automotive (SAH Quote). It's in less desirable areas of the country, so I will pass for now but revisit at a later date.

Georgia Gulf (GGC Quote): It's cheap, but I worry about the balance sheet, and I already own Dow and Lyondell (LYO Quote).

Thornburg Mortgage (TMA Quote): It would give me conflicts of interest with my employer.

Optimal Group (OPMR Quote): This is the most interesting of the ones I did not buy. They have some interesting payments technologies, but the earnings estimate momentum was negative, and I could not discern what competitive advantages they had.

Encore Wire (WIRE Quote): It's a bit of a cult stock. I just don't like the business they are in.

Arkansas Best (ABFS Quote) and P.A.M. Transportation (PTSI Quote): I own YRC Worldwide (YRCW Quote), and these are not appreciably cheaper.

Foot Locker (FL Quote): Too many earnings disappointments.

Spectrum Brands (SPC Quote): Lousy set of brands and a poor earnings history.

Stolt Neilsen (SNSA Quote): I own Tsakos (TNP Quote), and I think it has better growth prospects.

National Coal (NCOC Quote): Too small. I don't like buying companies with under $100 million of market capitalization.

Home Solutions of America (HSOA Quote): I don't like their business, given my view of the housing market.