As we touched upon in our July 9, 2023 Weekly Wrap Up, there is a need to separate the legacy stocks from new stocks that we are writing about that are more aligned with a GARP strategy and new market environment.

Part one of this move is to give you an idea of where our legacy stocks stand in terms of timeliness and risk. Given the change in the market environment, there are changes in the outlook of some of the companies that we follow, so we believe this is a necessary task.

We have started this analysis with the selected longs model portfolio and some of our newer research. Some themes that this exercise addresses for stocks of varying convictions are:

1. Newer ideas that are more aligned with the narrative of the new market environment. (post-2022, need monitoring)
2. The most promising legacy stocks. (pre-2022, high conviction)
3. Legacy stocks facing headwinds that we still think have long-term potential if they address certain concerns we have. (pre-2022, need monitoring)
4. Stocks where we feel the headwinds are incredibly substantial. (a.k.a. the graveyard).