Pilgrim’s Pride (PPC)
Shares of the well-known chicken producer were halted yesterday after the stock took an almost 40% haircut. Then, at 1 a.m. this morning, the company disseminated a release saying that it “expects to report a significant loss in the fiscal fourth quarter ending September 27th, 2008.”

Furthermore, “Pilgrim's Pride recently informed its lenders that it does not expect to be in compliance with its fixed-charge coverage ratio covenant under its principal credit facilities... but expects to be in compliance with all other covenants as of the end of the 2008 fiscal year.”

Long story short: I wouldn’t even think about bottom-fishing here. Too many balls up in the air, too much uncertainty. And while I think Pilgrim's could potentially turn things around, I certainly wouldn’t bet the ranch on it.

Washington Mutual (WM)
The Washington-based bank is looking for private-equity firms to save its hide. Word has it that Blackstone (BX) and Carlyle Group could step up to the plate. But if they do, will they promptly hold the company over a barrel? Those unknowns will keep me on the sidelines here.

Ford (F)/ General Motors (GM)
Word has it that our lawmakers are likely to pass $25 billion in loans to “help companies meet new federal fuel-efficiency standards.” But how are these companies going to spend that dough? It could take a while before we start to see tangible results - and the loans could end up being nothing more than a little more rope for these companies to hang themselves with.

They need to do something big and bold on their own to seriously turn things around. Though there is talk that the stocks could show some signs of life with the added infusion of cash.