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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
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Wax Ink
  • Performance - Week Ending 06/21/13 0 comments
    Jun 23, 2013 9:08 AM | about stocks: NOV, KNL, PHG, BAS, ROP, SAH, KAMN, LAYN, SCX, HFC, TLAB, ARCB

    The American Congress notwithstanding, I have to say that it has been a very long time since I have seen such a concentration of hubris, and it made me wonder…how do they know?

    I'm referring of course to the folks on the financial networks that have decided that because QE3 may be ending, and interest rates could start to rise, the markets are on the edge of a meltdown of unimaginable proportions.

    It is these same folks that point to the government sequester as the cause for the recent increase in unemployment, while at the same time wondering out load when the market rally is going to continue.

    Simply put, they are guessing, writing about what they hope will increase readership. Because their articles fail to offer a single substantive fact in support of their conclusions, they hope to attach readers with headlines their articles do not support. In the end, it's all just fodder and blarney.

    To show you how downright silly things have become, the other day I noticed an article with a hedge fund manager who was being interviewed about value investing!

    Really? What does a hedge fund manager care or for that matter know, about value investing?

    Oh, I admit that the article was well done, and the hedge fund guy knew what he was talking about. But what he did not explain was how you apply a value investing philosophy to a hedge fund?

    A few sentences into the article, I discovered the truth about the article. Both the interviewer and the interviewee, were trying to sell newsletters. Yep that was the goal. To convert readers into newsletter subscribers.

    And that is really the point of this article. Not to get folks signed up for newsletters, though I happen to think some of them are extremely valuable, but to highlight for the working class investor that many times what you see, or read, or hear, about the stock market, is simply spin, intended to part you from your money.

    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 if 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.

    Enjoy your weekend.

    Wax

    Markets
    The Wax Ink Portfolio was down 1.9% for the week. By comparison the Dow was down 1.8%, the Nasdaq was down 1.9%, the S&P 500 was down 2.1%, and the Russell 2000 was down 1.8%.

    The Volatility Index, commonly known as the VIX, was up 10.2% for the week, closing at 18.90. The VIX is now up 24.0% for the year.

    Year to date, the Wax Ink portfolio is up 7.2% while the Dow is up 12.9%, the Nasdaq is up 11.2%, the S&P 500 is up 11.7% and the Russell 2000 is up 13.5%.

    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 finished baseline equity reviews on the following companies during the course of the week. My rating follows the ticker symbol.

    National Oilwell Varco, Inc. (NYSE: NOV) - No Investment Interest
    Knoll, Inc. (NYSE: KNL) - No Investment Interest
    Koninklijke Philips N.V. (NYSE: PHG) - No Investment Interest
    Basic Energy Services, Inc. (NYSE: BAS) - Positive Investment Interest
    Roper Industries, Inc. (NYSE: ROP) - Loss of Investment Interest
    Sonic Automotive, Inc. (NYSE: SAH) - No Investment Interest

    Holdings
    This week's moving on up stocks were helicopter and defense contractor Kaman Corporation (NYSE: KAMN), up 5%, heavy construction contractor Layne Christensen Company (Nasdaq: LAYN), up 2%, and small tool company The L.S. Starrett Company (NYSE: SCX), up 2%.

    This week's floaters in the bunch bowl stocks were oil refiner Holly Frontier Corporation (NYSE: HFC), down 8%, communications equipment company Tellabs, Inc. (Nasdaq: TLAB), down 8%, and trucking company Arkansas Best Corporation (Nasdaq: ABFS), down 4%.

    Not Performing
    The top non-performers remain communications equipment company Tellabs, Inc., down 63% since being added to the portfolio, iron ore company Cliffs Natural Resources, Inc., down 49% since being added to the portfolio, and garage door/telephone headset maker Griffon Corporationdown 41% since being added to the portfolio.

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

    Disclosure: I am long KAMN, LAYN, SCX, HFC, TLAB, ABFS.

    Stocks: NOV, KNL, PHG, BAS, ROP, SAH, KAMN, LAYN, SCX, HFC, TLAB, ARCB
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