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Performance - Week Ending 01/25/2013

Maybe it was the Martin Luther King holiday, maybe it was the steady stream of earnings reports, or may big money investors are simply glad they no longer own stock in Apple (Nasdaq: AAPL), I have no idea. But whatever it is, I hope it continues, this market surge. My portfolio loves it!

There was some sort of announcement from Germany that their business climate index was better than predicted which I at first thought may have been the reason for this mini market rally, but then I find that the business outlook in the United Kingdom is pretty crummy, so I really have no idea why the markets moved up, I'm just glad they did.

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 now, managing your own 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, I suggest you try Dinah's Place.

Believe it or not, there was other market activity unrelated to Apple (Nasdaq: AAPL), and that activity was, for the most part, very positive for the portfolio.

The Wax Ink Portfolio did manage a 2.3% gain for the week, while the Dow closed up 1.8%, the Nasdaq was up 0.5%, the S&P 500 was up 1.1%, and the Russell 2000 was up 1.4%.

Year to date, the portfolio is up 7.8%, while the Dow is up 6.0%, the Nasdaq is up 4.3%, the S&P 500 is up 5.4% and the Russell 2000 is up 6.6%.

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 34 companies currently on my research list.

I was able to spend time this week updating my worksheets for companies on my research list which resulted in two drops.

The first stock I dropped was medical radiation company Accuray Incorporated. The company's financials were just not worth the effort at this time, and I just don't believe senior management is active enough in the day to day operation of the company. So for these reasons I dropped the company from my research list.

The other stock I dropped was automated test equipment maker LTX-Credence Corporation. When the first thing you find is that the company's year-over-year sales have fallen by 50%, it's time to dump the stock and that's exactly what I did. I saw that sales had fallen from $249.5 million in FY11 to $132.1 million in FY12 and I stopped, removed the stock from research list, and that was that.

This week's moving on up stocks were ultra-capacitor maker Maxwell Technologies, Inc. (Nasdaq: MXWL), up 14%, trucking company Arkansas Best Corporation (NYSE: GE), up 9%, and after-market auto parts maker Dorman Products, Inc. (Nasdaq: DORM), up 7%.

This week's crapper stocks were iron ore and coal mine company Cliffs Natural Resources, Inc. (NYSE: CLF), down 4%, small tool maker The L.S. Starrett Company (NYSE: SCX), down 3%, and packaging maker Meyers Industries, Inc. (NYSE: MYE), down 1%.

Not Performing
As I note every week, there are several portfolio stocks that simply are not performing. Once again this week, communications equipment company Tellabs, Inc. did nothing and remains down 58% since I added it to the portfolio.

Also continuing to piss me off are government contractor SAIC, Inc. (NYSE: SAI), down 38%, and garage door/telephone headset maker Griffon Corporation (NYSE: GFF), down 33%.

As I have been saying, over the course of the next several months, two of these non-performing stocks will have reached or exceeded their 5 year portfolio anniversary. While I still believe in the stocks, it may be time to dump them. I will be making that decision by early summer.


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.