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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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  • Performance - Week Ending 03/15/2013 0 comments
    Mar 16, 2013 11:42 AM

    The markets continue to run and run hard, with the Dow up a little over 1400 points last week. But as I noted in this space a couple of weeks ago, the markets are trying to sustain what is inevitably, unsustainable.

    As long as shorter-term investors make good sound investment decisions, and take some profits off of the table along the way, this current bull run could prove to be rewarding.

    On the other hand, for longer-term investors like myself, just watching the ebb and flow of the markets gives me gas. The only reason I do it is because I have a large number of shorter-term investors that read this space.

    For those that have commented that the portfolio value is declining while the major indices are advancing, I would point out that last year similar events occurred, and for a large part of the year the portfolio lagged the greater markets.

    But by year end, the portfolio was up 18.2%, followed by the Nasdaq at 15.9%, the Russell 2000 at 14.6%, the S&P 500 at 13.4%, and then the Dow at 7.3%.

    Hopefully I can accomplish such a nice return this year. Whether or not I beat an index won't be known until the end of the year.

    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 watching pigs shop.

    Markets
    The Wax Ink Portfolio closed off 0.7% for the week. By comparison the Dow was up 0.8%, the Nasdaq was up 0.1%, the S&P 500 was up 0.6%, and the Russell 2000 was up 1.1%.

    The Volatility Index, commonly known as the VIX, closed at 11.30, down 10%.

    Year to date, the Wax Ink portfolio is up 6.3%, the Dow is up 10.8%, the Nasdaq is up 7.6%, the S&P 500 is up 9.4% and the Russell 2000 is up 12.1%.

    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 34 companies currently on my research list.

    As I noted last week, I intended to take an initial position in Maidenform Brands, Inc. (NYSE: MFB) Monday morning, and indeed I put in a good till cancel buy order at $16.50, But since the stock never got that low, my order never executed.

    So the stock is still on my watch list along with new addition Adams Resources and Energy, Inc. (NYSE: AE).

    Holdings
    This week's moving on up stocks were chicken grease collector Darling International, Inc. (NYSE: DAR), up 11%, rubber and tire king The Goodyear Tire and Rubber Company (NYSE: GT), up 5%, and trucking company Arkansas Best Corporation (Nasdaq: ABFS), up 5%.

    This week's turd in the bunch bowl stocks were iron ore company Cliff's Natural Resources, Inc. (NYSE: CLF), down 11%, ultra-capacitor maker Maxwell Technologies, Inc. (Nasdaq: MXWL), down 9%, and small tool maker The L.S. Starrett Company (NYSE: SCX), down 7%.

    Not Performing
    As I note every week, there are several portfolio stocks that simply are not performing, and while that really pisses me off, not only am I the one that bought them, I still believe in all of them.

    I hope within the next 5-6 weeks, to have the time to go through the entire portfolio to re-exam why I bought the stocks in the first place and why they are still on my portfolio today.

    The top three non-performers remain communications equipment company Tellabs, Inc. (Nasdaq: TLAB), down 60% since added, government contractor SAIC, Inc. (NYSE: SAI), down 36% since added, and garage door/telephone headset maker Griffon Corporation (NYSE: GFF), down 34% since added.

    Wax

    Wax Ink is a baseline equity research company comprised of individual investors NOT licensed or registered with ANY government agency. Always obtain the advice of a registered investment professional BEFORE believing any information contained herein.

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