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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 06/14/2013 0 comments
    Jun 16, 2013 10:07 AM | about stocks: CHKP, COP, DHI, EAT, HAS, GT, AIR, SWM, MXWL, LDOS, IRF

    In the world of investing, it is always something. One day the markets run to the stars for no reason, and the next day they fall to the depths of the ocean for no reason.

    Through all of this turmoil, the do it yourself investor continues to plod along, every week or so, trying to squirrel away a few dollars for vacation, car repair, the kids college fund, something.

    There are times when the do it yourself investor appears to be an investing genius and times, probably more than the former, when they appear to be, well, not so good.

    The trick of course is to have a plan and then work that plan, paying no attention to anything, other than your plan.

    A great example of this is Charlie, a friend from work. Charlie is constantly jumping in and out of the market. He hangs on every word that is uttered on the television business channels, never asking himself why, if these folks are so smart, they are working at all.

    The latest calamity he is addressing is the eventual rise in interest rates. It is his belief that all the smart investors will move into bonds. So on Friday he set about to convert his stock positions into bond positions.

    The problem with his thinking is that he is listening to all of the pundits that employ super computers to execute their trades. By the time Charlie realizes he may have made a mistake, the market will have changed and he will be trying to get out of bonds as bond yields fall, and back into equities as equity prices rise.

    Poor Charlie. What difference does it make if interest rates rise? The markets will factor that in, prices will adjust, and that will be that.

    Should equity prices fall, the smart investors will add to their positions or take on new positions. Should equity prices rises, the smart investors will do two things.

    The first thing is realize their initial investment has increased in value. The second thing is they will continue to research equities so when the markets fall they are ready to jump in.

    Hi. 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.

    Throughout the course of the week, I post a Daily Alert, which is my review of an individual equity. It is intended to help the reader decide of that particular equity is worth their time to research.

    The other thing I do, is let the world watch as I manage the The Wax Ink Portfolio.

    Perhaps watching me make the mistakes I make will help other blue collar investors avoid the investing pitfalls that seem to find me.

    Markets
    The Wax Ink Portfolio was down 1.4% for the week. By comparison the Dow was down 1.2%, the Nasdaq was down 1.3%, the S&P 500 was down 1.0%, and the Russell 2000 was down 0.6%.

    The Volatility Index, commonly known as the VIX, was up 13.3% for the week, closing at 17.15. The VIX is now up 12.5% for the year.
    Year to date, the Wax Ink portfolio is up 9.2% while the Dow is up 15.0%, the Nasdaq is up 13.4%, the S&P 500 is up 14.1% and the Russell 2000 is up 15.5%.

    Breakdown
    The portfolio breakdown remains the same, with roughly 70% of the portfolio in equities, 30% of the portfolio in cash, and 0% of the portfolio in bonds.

    Research
    I was able to finish baseline equity reviews on the following companies during the course of the week, with the listed rating.

    Check Point Software Technologies Ltd. (Nasdaq: CHKP) - No Investment Interest

    ConocoPhillips (NYSE: COP) - No Investment Interest

    D.R. Horton, Inc. (NYSE: DHI) - No Investment Interest

    Eaton Corporation (NYSE: EAT) - Loss of Investment Interest

    Hasbro, Inc. (NYSE: HAS) - No Investment Interest

    Holdings
    This week's moving on up stocks were tire maker Goodyear Tire and Rubber Company (NYSE: GT), up 3%, airplane maintenance contractor AAR Corporation (NYSE: AIR), up 2%, and paper maker Schweiter-Maudit International, Inc. (NYSE: SWM), up 2%.

    This week's floaters in the bunch bowl stocks were ultra-capacitor maker Maxwell Technologies, Inc. (Nasdaq: MXWL), down 14%, government engineering contractor SAIC, Inc. (NYSE: SAI), down 9%, and semi-conductor maker International Rectifier Corporation Corporation (NYSE: IRF), down 4%.

    Not Performing
    The top non-performers remain communications equipment company Tellabs, Inc., down 60% since being added to the portfolio, iron ore company Cliffs Natural Resources, Inc., down 47% since being added to the portfolio, and garage door/telephone headset maker Griffon Corporationdown 39% since being added to the portfolio.

    Wax

    Wax Ink is a baseline equity research company comprised of individual investors NOT licensed or registered with ANY government agency.

    Disclosure: I am long GT, AIR, SWM, MXWL, SAI, IRF.

    Themes: Portfolio Management Stocks: CHKP, COP, DHI, EAT, HAS, GT, AIR, SWM, MXWL, LDOS, IRF
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