I exited out of Qwest (Q) and bought more Delphi (DPHIQ.PK) on Friday.
It's pretty much the same deal as the last time I bought Delphi, with Qwest taking the place of Sears as the most dispensable/smallest percentage holding in my portfolio. At least I was able to get a small gain (9%) for the year I held Q.
Right after that previous Delphi post, I was feeling kinda smart as the stock rallied to $2.20.
A little over a week later, it's at $1.20. Ouch...I've just caught a falling knife.
I'm still think the market's making a mistake by selling Delphi. I understand that its motivated by the subprime/private equity/corporate credit uncertainty, and the negative implications that has for the Appaloosa deal. But I still think the deal is safe. There's too many stakeholders - shareholders, Appaloosa, General Motors (GM), the UAW, and government - to not allow Delphi to emerge from bankruptcy 100% healthy.
That having been said, I'd feel much better if DPHIQ found a bottom on Friday.
