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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 - Week Ending 02/02/2013 0 comments
    Feb 2, 2013 10:41 AM

    At long last, economic data, and while I didn't think it was very positive, the markets thought the news was great.

    Here's the deal.

    China announced a continued expansion in their manufacturing sector while Europe announced economic numbers that were better than expected.

    On the domestic front, non-farm job creation was less than expected and the unemployment rated increased a bit. While most investors would think this was a bad thing, the markets thought it was great because it meant the Federal Reserve will continue to piss money down a hole buying bonds and other worthless U.S. debt instruments.

    Personally, I don't give two fiddler's good-god-damns about any of that crap, I just want the stuff I own to go up. If that means the Chinese need to piss off the Russians, or the Russians need to sell submarines to Iran, or Egypt needs throws their new dude to the street, I really don't care. I just want the price of my stuff to increase.

    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 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.

    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.

    Markets
    Most companies that have reported earnings have beaten an incredibly lowered earnings expectation. What folks need to remember is that these earnings announcements are 4th quarter 2012 earnings and not audited full year earnings, which is what I use for my valuation work.

    The Wax Ink Portfolio increased 0.2% for the week, while the Dow closed up 0.8%, the Nasdaq was up 0.9%, the S&P 500 was up 0.7%, and the Russell 2000 was up 0.7%.

    Year to date, the portfolio is up 8.0%, while the Dow is up 6.9%, the Nasdaq is up 5.3%, the S&P 500 is up 6.1% and the Russell 2000 is up 7.3%.

    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 34 companies currently on my research list.

    I was not able to spend any time this week updating my worksheets for companies on my research list so there were no adds or drops to the list.

    Holdings
    This week's moving on up stocks were independent oil refiner Holly Frontier Corporation (NYSE: HFC), up 12%, iron ore and coal mine company Cliffs Natural Resources, Inc. (NYSE: CLF), up 5%, semiconductor maker, and International Rectifier Corporation (NYSE: IRF), up 2%.

    This week's crapper stocks were trucking company Arkansas Best Corporation (Nasdaq: ABFS), down 8%, communication equipment company Tellabs, Inc. (Nasdaq: TLAB), down 8%, and airplace repair company AAR Corporation (NYSE: AIR), down 5%.

    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 61% 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 34%.

    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

    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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