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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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  • Hot Dogs For Nathan 0 comments
    May 8, 2012 4:14 AM | about stocks: DCO, PAY, IIIN, KAMN, LBY

    I wish I could say that at Wax Ink we are so brilliant that we saw this current market weakness coming and are currently reaping the rewards of that brain power, but saying that would just put Wax Ink in the same category as bankers and politicians.

    The simple fact is that at the moment, being an investor is very painful, and in my opinion, it is going to continue to be painful through most of the summer months.

    Performance

    The Wax Ink portfolio dropped 5.0% for the week. By comparison, the Dow was down 1.4%, the Nasdaq was down 3.7%, the S&P 500 was down 2.4%, and the Russell 2000 was down 4.1%.

    Year to date, the Wax Ink Portfolio is up 7.8%, while the Dow is up 6.7%, the Nasdaq is up 13.5%, the S&P 500 is up 8.9% and the Russel 2000 is up 6.9%.

    Market Thoughts

    Non-farm payrolls rose 115,000. At first the markets didn't pay much attention. Then the guy that sweeps up the floor of the exchange noticed he was out of sweeping up stuff. He called his assistant on the super secure and very secret sweeping up radio and asked that the assistant bring him the needed supplies.

    It was at this point that the guy that sweeps up find out that the porter position, the position under the sweeping up guy's assistant, had been eliminated. The guy that sweeps up also learned that his assistant was doing the washroom attendant's job because the washroom attendant had been laid off some months ago.

    This meant that if the guy that sweeps up truly needed supplies, he would have to retrieve them, himself.

    Standing close to the guy that sweeps up was the guy that turns the lights off. Hearing only one side of the radio conversation because it was being broadcast on the super secret sweeping up radio in stealth mode, the guy that turns the lights off called his buddy on the super super secret shirt collar phone and told him that the porter and the washroom attendant has been laid off.

    This conversation was heard by the beanie weenie trader who was in the can at the time of the conversation, and so could confirm that indeed the assistant to the guy that sweeps up was performing the duties of the washroom attendant.

    So with it confirmed that the exchange was not only reducing staff, but also unable to purchase cleaning supplies, the crap hit the fan and the selling began.

    Then Thoughts

    On the political front [sigh]. I read through more bullsh_t this week than a matador sees in a lifetime. I have finally decided that in the end, politics, like mad cow disease is for losers.

    It started with numb nuts, governor good hair Rick Perry requesting the help of a supreme being; then George Clooney stumping for Obama votes as opposed to humping for Obama votes; then North Carolina preparing for a vote on gay marriage; then "Quimgate" continuing with Senator Vitter who knows something about quim sellers being interviewed; then Speaker Boehner being deeply disturbed that a blind China dude living in China went back to China; then that Ann Romney, wife of multi-millionaire and presidential hopeful Mitt Romney, owns a $990 shirt.

    Then...

    Wax

    Leading the charge to the bottom of the porcelain swirl machine in the Wax Ink Portfolio were aerospace and defense contractor Ducommun, Inc. (NYSE: DCO), down 15%, ecommerce facilitator Verifone Systems, Inc., (NYSE: PAY), down 14%, iron and steel company Insteel Industries, Inc. (Nasdaq:IIIN), down 13%, and finally aerospace company Kaman Corporation, (Nasdaq: KAMN), down 13%.

    Thundering to towards the mountain tops for the week was housewares and accessories company Libbey, Inc. (AMEX: LBY) up 7%.

    Disclosure: I am long DCO, PAY, IIIN, KAMN, LBY.

    Stocks: DCO, PAY, IIIN, KAMN, LBY
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