Scott Wachsler's  Instablog

Scott Wachsler
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I manage Wax, 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
My company:
Wax Ink
My blog:
Wax Ink
  • Performance - Week Ending 03/23/2012 0 comments
    Mar 24, 2012 1:36 PM | about stocks: AIR, LEU, IIIN, DCO, GE, MYE, USG

    The Wax Ink portfolio declined 0.9% for the week. By comparison, the Dow was down 1.1%, the Nasdaq was up 0.4%, the S&P 500 was down 0.5%, and the Russell 2000 was down 0.15%. All in all not exactly a stellar week for the portfolio.

    Year to date, the Wax Ink Portfolio is up 15.5%.


    The profit takers moved in during the week, deciding as usual that a bird in their pants is more fun than one they can't catch. This week the one that investor's couldn't catch was China.

    It seems that the movers and shakers in the metals industry noted that China's steel production seemed to be leveling off. Nobody actually knows for certain what China's steel industry is doing, but it could be slowing.

    Anytime something could be happening, investors, being the wise old pocket pool players that they are…sell. It seems that all of this steel stuff in China was reinterpreted in America as the world economy has stalled.

    The reality is that China's economy simply needs some breathing room so it can absorb its production. Tweedle Dee and Tweedle Dum, Fed Chairman Bernanke and Treasury Secretary Geithner respectively, didn't help the markets when they offered little in response to the gathering news that China's PMI, like Europe's PMI, appeared to be declining.

    Who knew purchasing managers had so much stroke?

    Meanwhile on the political front, Mitt Romney was impressed with big lava lamps, an Etch-A-Sketch seems to be all that's needed to get the economy back on it's feet, Rick Santorum admits he isn't a pretty sight, Vice-President Biden thinks he is a lubricated Irishman, Robert DeNiro tried his hand at comedy and flopped, and we learned that the First Lady apparently had a son out of wedlock that is named…Bo.


    Leading the way to a poor week this week in the Wax Ink Portfolio were aerospace supplier AAR Corporation (NYSE: AIR), down 13%, industrial metals company USEC, Inc. (Nasdaq: USU), down 8%, iron and steel company Insteel Industries, Inc. (Nasdaq: IIIN), down 7%, and government communications company Ducommun, Inc. (NYSE: DCO), down 7%.

    Trying to get it up and keep it up were rubber and plastics company Myers Industries, Inc., (NYSE: MYE), up 6%, and building materials manufacturer USG Corporation, (NYSE: USG), up 4%.


    Disclosure: I am long AIR, USU, IIIN, DCO, GE, MYE, USG.

    Stocks: AIR, LEU, IIIN, DCO, GE, MYE, USG
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