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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 07/19/2013 0 comments
    Jul 20, 2013 10:44 AM | about stocks: DCO, ALXN, ASH, ASTE, T, BHI, BYD, MYE, AIR, FSTR, GRA, AGU, ARCB

    The markets generally continued their march towards the heavens again this week, providing an additional false sense of security that the economy is just fine.

    Mr. Bernanke, the Federal Reserve Chairman, has contributed to this march by reiterating that the Fed is going to continue to pump billions of dollars into the economy for the foreseeable future.

    And investors, eager to get to "Easy Street", have continued to pour money into equities they know nothing about.

    The day of reckoning of course will one day arrive.

    When it does, the markets will plummet into a grand abyss, the Wall Street Wizards will inundate the news with their end of the world scenarios, and Congress will pound their collective fist on the communal table decrying such outrage as they promise to do all they can "to get to the bottom of this", all the while knowing that they are far to inept to do anything.

    Individual investors managing their own portfolios won't fair any better when the grand log drops to the cool blue pool, neither will the newsletter subscribers or money manager clients. Nope, when the big dump happens, it will catch us all.

    But for those investors that have been patient and diligent, and filled their portfolios with great companies bought at on sale prices, for those investors, the recovery should lead their portfolios to highs much improved from their current highs.

    It isn't going to be an easy event to be apart of, the correction, and it may drag on for as much as a year. But once the recovery takes hold, those that have refused to listen to the Wall Street Wizards should be well and truly rewarded.

    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 2.3% for the week. By comparison the Dow was up 0.5%, the Nasdaq was down 0.4%, the S&P 500 was up 0.7%, and the Russell 2000 was up 1.3%.

    The Volatility Index, commonly known as the VIX, was down 9.4% for the week, closing at 12.54. The VIX is now down 17.7% for the year.

    Year to date, the Wax Ink portfolio is up 17.2% while the Dow is up 18.6%, the Nasdaq is up 18.8%, the S&P 500 is up 18.6% and the Russell 2000 is up 23.7%.

    Breakdown
    The portfolio breakdown changed slightly this week, with roughly 68% of the portfolio in equities, 28% of the portfolio in cash, and 0% of the portfolio in bonds.

    The reason for the change is that I closed my position in Ducomun, Inc. (NYSE: DCO) selling at $24.30 per share. With a cost basis of $17.25, I had a return after fees and expenses of 41% after the stock for 1467 days. Not exactly stellar performance.

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

    Alexion Pharmaceuticals, Inc. (Nasdaq: ALXN) - Loss of Investment Interest

    Ashland, Inc. (NYSE: ASH) - No Investment Interest

    Astec Industries, Inc. (Nasdaq: ASTE) - No Investment Interest

    AT&T, Inc. (NYSE: T) - No Investment Interest

    Baker Hughes Incorporated (NYSE: T) - No Investment Interest

    Boyd Gaming Corporation (NYSE: BYD) - Cautious Investment Interest

    Holdings
    This week's moving on up stocks were container maker Myers Industries, Inc. (NYSE: MYE), up 9%, aircraft repair contractor AAR Corporation (NYSE: AIR), up 5%, and industrial materials supplier L.B. Foster Company (Nasdaq: FSTR), up 5%.

    This week's floaters in the bunch bowl stocks were specialty chemical maker W.R. Grace and Company, Inc. (NYSE: GRA), down 3%, agricultural chemicals company, Agrium, Inc. (NYSE: AGU), down 2%, and trucking company Arkansas Best Corporation (Nasdaq: ABFS), down 2%.

    Not Performing
    The top portfolio non-performers remain communications equipment company Tellabs, Inc., down 59% 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 31% since being added to the portfolio.

    Copyright © 2013 Wax Ink

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

    Disclosure: I am long MYE, AIR, FSTR, GRA, AGU, ABFS.

    Themes: Investing Ideas Stocks: DCO, ALXN, ASH, ASTE, T, BHI, BYD, MYE, AIR, FSTR, GRA, AGU, ARCB
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