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 03/08/2013 0 comments
    Mar 9, 2013 11:43 AM

    The markets are simply writhing in orgasmic delight at the moment, trying as best they can to sustain what is inevitably, unsustainable.

    I have spent the past 29 years unsuccessfully trying to figure out why they markets do what the markets do, and the recent Dow explosion is no exception.

    I wish I were smart enough to understand the mind of the investor, but that would mean I understood my own mind, which clearly I do not since I am still an active participant in the very same markets I think are vastly overpriced!

    So, where will all of this lead? To be brutally honest I don't know and what's more, I don't care.

    Like the vast majority of small fry investors, I intend to keep acting as if I were a stock market genius when the markets go up, and crying and pissing myself like the kitty I am, when the markets decline.

    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.

    Every week in this space I recount how poorly I have managed The Wax Ink Portfolio during the prior week.

    I do it in hopes of helping other working class investors dodge the same traps I have fallen victim to. Sort of a don't do what I did kinda thing.

    If that piques your interest, or if you just want to follow along and laugh at the idiot with no village, I'm glad you have found this place.

    On the other hand, if you are looking for market commentary intermixed with the bullshit that is politics, I suggest you try Some Place Else.

    The Wax Ink Portfolio closed up 2.9% for the week. Meanwhile, the Dow closed up 2.2%, the Nasdaq was up 2.4%, the S&P 500 was up 2.2%, and the Russell 2000 was up 3.0%.

    The Volatility Index commonly known as the VIX, closed down 18%.

    Year to date, the Wax Ink portfolio is up 7.0%, the Dow is up 9.9%, the Nasdaq is up 7.4%, the S&P 500 is up 8.8% and the Russell 2000 is up 11.0%.

    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 33 companies currently on my research list. However, I am going to add a buy order on Monday morning for Maidenform Brands, Inc. (NYSE: MFB), which if successful, will move the stock off of my Research List and into my portfolio.

    This week's moving on up stocks were government contractor Ducommun, Inc. (NYSE: DCO), up 11%, drug maker Cubist Pharmaceuticals, Inc. (Nasdaq: CBST), up 11%, and communications equipment maker Tellabs, Inc. (Nasdaq: TLAB), up 9%.

    This week's turd in the bunch bowl stocks were ultra-capacitor maker Maxwell Technologies, Inc. (Nasdaq: MXWL), down 7%, heavy construction contractor Layne Christensen Company (Nasdaq: LAYN), down 2%, and iron ore company Cliff's Natural Resources, Inc. (NYSE: CLF), down 2%.

    Not Performing
    As I note every week, there are several portfolio stocks that simply are not performing. Finally this week, communications equipment company Tellabs, Inc. at least moved enough so that I know it is still alive, gaining 2% for the week.

    Also continuing to piss me off, just not as badly, 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 a baseline equity research company 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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