Scott Wachsler's  Instablog

Scott Wachsler
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I manage Wax, 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
My company:
Wax Ink
My blog:
Wax Ink
  • Performance - Week Ending 01/11/2013 0 comments
    Jan 13, 2013 8:01 AM

    It was a fairly lackluster week for the markets and the portfolio last week, as China announced a higher consumer price index which spurred inflationary fears, but only momentarily.

    China then announced their trade surplus had expanded by $31.6 billion and it looked like the markets were going to make a bold move.

    But as usual, the markets simply pissed themselves and went back to sleep, leaving the Wax Ink Portfolio will little gain for the week.

    Sometimes I wonder whatever happened to earnings as the main influence on the markets? Maybe, like the rotary dial telephone, earnings are a thing of the past.

    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, and 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. But you have to do the work, I cannot help you.

    You need to be aware that none of this is easy. It requires effort, patience, and one helluva lot of dedication.

    You also need to know up front, in advance, managing your own money…isn't for everybody.

    Aside from some worksheets, the only other thing I can do is let you follow along with me and my investing struggles as I manage The Wax Ink Portfolio.

    That's it. There's nothing else I can do for you. I'm sorry I didn't make the rules, but I do have to play by them.

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

    If you are looking for market commentary intermixed with the bullshit that is politics, you're in the wrong place.

    The markets did little more than play with themselves this week since there was no real economic news of note, outside of a couple of announcements from China that the markets paid little attention to.

    As I noted last week, with the year end, and closing a position in the portfolio, the portfolio's year to date performance tended to be a bit skewed.

    I finally got a little time through the week to straighten all of that out, and so the year to date information is now, back on track, ending the week with a gain of 0.2%.

    By comparison, the Dow closed up 0.4%, the Nasdaq was up 0.8%, the S&P 500 was up 0.4%, and the Russell 2000 was up 0.2%.

    Year to date, the portfolio is up 4.8%, while the Dow is up 2.9%, the Nasdaq is up 3.5%, the S&P 500 is up 3.2% and the Russell 2000 is up 3.7%.

    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.

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

    When you work for a living, there isn't much time for equity research, especially while trying to create at least 10 worksheets a week, which hopefully explains why the research list doesn't seem to change very often.

    This week's moving on up stocks were industrial tool maker The L.S. Starrett Company (NYSE: SCX), up 6%, pharmaceutical company Cubist Pharmaceuticals, Inc. (Nasdaq: CBST), up 4%, and agricultural chemical company Agrium, Inc. (NYSE: AGU), up 3%.

    This week's crapper stocks were airplane repair company AAR Corporation (NYSE: AIR), down 6%, tire and chemical company The Goodyear Tire and Rubber Company (NYSE: GT), down 4%, and after market auto parts company Dorman Products, Inc. (Nasdaq: DORM), down 3%.

    Not Performing
    There are several portfolio stocks that continue to get pummeled, including garage door maker Griffon Corporation (NYSE: GFF), down 34%, government contractor SAIC, Inc. (NYSE: SAI), down 39%, and communications equipment company Tellabs, Inc. (Nasdaq: TLAB), down 59%.

    Over the course of the next several months some of these non-performing stocks will reach their 5 year portfolio anniversary. At that time, I will be making a decision about dumping them, or keeping them in the portfolio for another year.


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