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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 07/12/2013 0 comments
    Jul 13, 2013 10:09 AM | about stocks: HSTM, CNI, MMM, APD, AXE, HFC, IRF, CLF, SWM, ARCB, SCX

    The Federal Reserve head fakes continued again this week, much to the delight of the markets.

    As I noted some weeks ago, the Mr. Bernanke had made mention that with the general economy proceeding as it was, it may be time to pullback on the government stimulus.

    These comments not only led to a huge sell-off in the markets but highlighted the fact that there was a toilet paper shortage in Venezuela.

    This week of course the opposite is true. Not about the toilet paper shortage, but about the pullback in the government economic stimulus. This week Mr. Bernanke thinks cutting the stimulus at this stage would be premature.

    For those comments Mr. Bernanke, my portfolio thanks you.

    With that said, I am not about to get into a discussion of economic policy. As I have noted in this space any number of times, the pumping billions of dollars into the economy by the Fed will, eventually, end. When that day arrives, the markets and the economy will have to stand on their own.

    But that day is not here yet, and when it does get here, I doubt that I will do anything differently with my portfolio than I do day, which is find great companies and buy them when they go on sale.

    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 up 3.3% for the week. By comparison the Dow was up 2.2%, the Nasdaq was up 3.5%, the S&P 500 was up 3.0%, and the Russell 2000 was up 3.1%.

    The Volatility Index, commonly known as the VIX, was down 7.1% for the week, closing at 13.84. The VIX is now down 9.2% for the year.

    Year to date, the Wax Ink portfolio is up 14.5% while the Dow is up 18%, the Nasdaq is up 19.2%, the S&P 500 is up 17.8% and the Russell 2000 is up 22%.

    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.

    HealthStream, Inc. (Nasdaq: HSTM) - Loss of Investment Interest

    Canadian National Railway Company (NYSE: CNI) - No Investment Interest

    3M Company (NYSE: MMM) - Loss of Investment Interest

    Air Products and Chemicals, Inc. (NYSE: APD) - Loss of Investment Interest

    Anixter International, Inc. (NYSE: AXE) - Loss of Investment Interest

    Holdings
    This week's moving on up stocks were oil and gas refiner Holly Frontier Corporation (NYSE: HFC), up 8%, semiconductor maker International Rectifier Corporation (NYSE: IRF), up 8%, and iron ore company Cliffs Natural Resources, Inc. (NYSE: CLF), up 8%.

    This week's floaters in the bunch bowl stocks were cigarette paper maker Schweitzer-Maudit International, Inc. (NYSE: SWM), unchanged, trucking company Arkansas Best Corporation (Nasdaq: ABFS), unchanged, and small tool maker The L.S. Starlett Company (NYSE: SCX), unchanged.

    Not Performing
    The top portfolio non-performers remain communications equipment company Tellabs, Inc., down 60% since being added to the portfolio, iron ore company Cliffs Natural Resources, Inc., down 50% since being added to the portfolio, and garage door/telephone headset maker Griffon Corporationdown 33% since being added to the portfolio.

    Wax Ink is a baseline equity research company NOT licensed or registered with any government agency.

    Copyright © 2013 Wax Ink

    Disclosure: I am long HFC, IRF, CLF, SWM, ABFS, SCX.

    Themes: Investing Ideas Stocks: HSTM, CNI, MMM, APD, AXE, HFC, IRF, CLF, SWM, ARCB, SCX
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