Scott Wachsler's  Instablog

Scott Wachsler
Send Message
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
My company:
Wax Ink
My blog:
Wax Ink
  • Performance - Week Ending 01/1/2013 0 comments
    Jan 19, 2013 10:40 AM

    The opening bell rang and the markets were officially open yesterday, as both remaining floor brokers looked up, farted, and then went back to sleep. It's what happens these days with little to no news or rumor.

    China did announce that their 2012 GDP grew by 7.9%, which I personally think is crap, and even that failed to really rally the markets. I guess the markets were more focused on the Martin Luther King holiday Monday.

    In the end the closing bell rang and sure enough, the markets had gone up a little.

    With the closing bell, both floor brokers went to get laid, and Henry, head of a custodial crew of one, emptied two trash cans and then turned out the lights, leaving the Wax Ink Portfolio with a small gain for the week.

    My name is Wax, and I am an individual investor, a working class investor, just trying to do the best I can in a world that was never intended for investors like me.

    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 you can use as a starting point for your own research, but you must do the work. With that, I cannot help you.

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

    You also need to know up now that managing your own money...is not 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 is nothing else I can do for you. I wish there were, but alas I didn't make the rules, I just have to play by them.

    So if this "place to see" 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 won't find that here. I suggest you try Dinah's Place.

    Markets
    The markets did little more than play with themselves this week since there was no real economic news of note, outside of an announcement from China and one from the University of Michigan, neither of which actually swayed investors.

    The Wax Ink Portfolio did manage a 0.7% gain for the week, while the Dow closed up 1.2%, the Nasdaq was up 0.3%, the S&P 500 was up 0.9%, and the Russell 2000 was up 1.4%.

    Year to date, the portfolio is up 5.5%, while the Dow is up 4.2%, the Nasdaq is up 3.8%, the S&P 500 is up 4.2% and the Russell 2000 is up 5.1%.

    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.

    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.

    Holdings
    This week's moving on up stocks were industrial tool maker The L.S. Starrett Company (NYSE: SCX), up 4%, large company that makes lots of stuff, General Electric (NYSE: GE), up 4%, and airplane repair company AAR Corporation (NYSE: AIR), up 3%.

    This week's crapper stocks were government communications contractor Ducommun, Inc. (NYSE: DCO), down 3%, pharmaceutical maker Cubist Pharmaceuticals, Inc. (Nasdaq: CBST), down 2%, and after market auto parts company Dorman Products, Inc. (Nasdaq: DORM), down 1%.

    Not Performing
    There are several portfolio stocks that continue to get pummeled, including garage door maker Griffon Corporation (NYSE: GFF), down 33%, government contractor SAIC, Inc. (NYSE: SAI), down 39%, and communications equipment company Tellabs, Inc. (Nasdaq: TLAB), down 58%.

    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.

    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.

Back To Scott Wachsler's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.