Scott Wachsler's  Instablog

Scott Wachsler
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I manage Wax Ink.net, a baseline equity research company comprised of individual investors not licensed or registered with any government agency. I have been all cap value investor and independent equity researcher for the past 30 years, and believe that patience is the key to successful... More
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Wax Ink
  • Performance Thoughts - 12/28/2012 0 comments
    Dec 31, 2012 5:42 AM

    The world watches as the government continues out of control. Big money electronic investors don't know whether to pee or go blind. Working people, people like us...continue to get screwed.

    Welcome to a typical week in the world of the working class investor.

    My name is Wax, and I am an individual investor, a working class investor, just trying to do the best I can with what I have.

    Those of us that actually work for a living know that saving money is hard. Investing that saved money is even harder. Understanding the risks before you invest is harder still.

    It can be done, but you have a lot of work to do. I can provide you with a baseline equity report, which is nothing more than a starting point for YOUR own research.

    The other thing I can do is let you follow along with me and my investing struggles as I do the best I can to manage the Wax Ink Portfolio.

    So if this "place to start" interests you, I'm very glad you're here.

    If you are looking for market commentary intermixed with the bullshit that is politics, you've come to the wrong place.

    Markets
    The markets spent the week as they always do, going up and down, before finally taking a big ol dump in the middle of Wall Street.

    As you can imagine, the Wax Ink Portfolio didn't fair much better than the broader markets, giving back 1.9% for the week.

    By comparison, the Dow closed down 1.9%, the Nasdaq was down 2.0%, the S&P 500 was down 1.9%, and the Russell 2000 was down 1.9%.

    Year to date, the Wax Ink Portfolio is up 15.1%, while the Dow is up 5.9%, the Nasdaq is up 13.6%, the S&P 500 is up 11.5% and the Russell 2000 is up 12.3%.

    The portfolio breakdown remains the same, with 70% of the portfolio in equities, 30% of the portfolio in cash, and 0% of the portfolio in bonds.

    Research
    I continue to research stocks, with 36 companies currently on my research list.

    Holdings
    Moving on up stocks were almost none existent for the week with tire maker The Goodyear Tire and Rubber Company (NYSE: GT), up 2%, ultra-capacitor manufacturer Maxwell Technologies, Inc. (Nasdaq: MXWL), unchanged, and iron ore company Cliffs Natural Resources, Inc. (NYSE: CLF), up 1%.

    Crapper stocks for the week were communication equipment maker Tellabs, Inc. (Nasdaq: TLAB), down 33%, small tool and tool accessory company The L.S. Starrett Company (NYSE: SCX), down 8%, and oil and gas company HollyFrontier Corporation (NYSE: HFC), down 5%.

    Not Performing
    There are several portfolio stocks that are currently down at or near 40% from their entry point, including government contractor SAIC, Inc. (NYSE: SAI), down 43%, garage door maker Griffon Corporation (NYSE: GFF), down 40%, and communications equipment company Tellabs, Inc. (Nasdaq: TLAB), down 57%.

    While puckered pretty good, I believe the underlying business fundamentals for these companies remains strong. Normally, I would simply buy more shares, and in several instances I have done just that. But I think at this point, I am just going to watch and see how thing unfold here at the end of the year before I make a determination regarding these stocks.

    Wax

    Wax Ink is comprised of individual investors, NOT licensed or registered with ANY government agency. Please obtain the advice of a registered investment professional BEFORE considering any information obtained from this site.

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