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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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  • Louis Lands A Ling 0 comments
    Jun 3, 2012 11:40 AM | about stocks: AAPL, SCX, USG, GT, MYE, LDOS, DCO

    The markets continue to react to stupidity and rumor, pulverizing the portfolios of the ordinary investor.

    Couple the current market mentality with the high speed computer trading of the select few, and the individual investor is screwed and tattooed before they arrive at their morning urination station.

    Portfolio Commentary
    The Wax Ink portfolio was down 4.0% for the week, the third worst week for the portfolio this year. By comparison, the Dow was down 2.7%, the Nasdaq was down 3.2%, the S&P 500 was down 3.0%, and the Russell 2000 was down 3.8%. This puts the weekly equilibrium change for the indices at -3.1%.

    Year to date, the Wax Ink Portfolio is down 3.4%, while the Dow is down 0.8%, the Nasdaq is up 5.5%, the S&P 500 is up 1.6% and the Russel 2000 is up 0.5%. This puts the annual equilibrium change for the indices at 1.0%.

    Market Commentary
    The indices continue to react to all of the negativity the financial news can generate. During the course of the week the May consumer confidence number was announced, and showed a decline of 3.8, April pending home sales came roaring in at -5.5%, a 6.1% delta from what the number was supposed to be, first quarter GDP was revised to reflect a growth rate of 1.9%, or 0.1% worse than anticipated, the preliminary May private payroll number was announced showing an increase of 133,000, which turned out to be approximately 24,000 less than expected, and if that stuff weren't enough, the weekly jobs claim number of 383,000 was roughly 15,000 worse than expected.

    I could mention a bit about the happenings in the Eurozone at this point, but what's the use. Nobody is going to pay any attention anyway.

    I could also mention Adam Smith, the pioneer of political economy and the distribution of wealth. But again, what's the use?

    The mere fact that each individual investor and each individual company owned by each individual investor has their own political and personal economies that control their specific distribution of wealth never seems to be considered. If it were, how many investors would pay attention to Wall Street, the White House, or the price of tea in Alabama?

    Should that miracle occur, should investors stop paying attention to all of the absolute crap that comes out of Wall Street and the White House, and start paying attention to their own personal economies, can you imagine the economic influence that would have not only on the political and economic climate in the United States, but also in the rest of the world?

    Makes me wonder if the Eurozone would have ever come into existence.

    I'm just saying...perhaps it's time to put forth some investing thought, before we plunk down our future retirement dollars.

    Equity Commentary
    Holdings in the Wax Ink Portfolio once again found it the markets very uncooperative with small tools company L.S. Starrett Company (NYSE: SCX), down 12%, building materials company USG, Inc. (NYSE: USG) down 11%, and rubber and plastics company The Goodyear Tire and Rubber Company, (NYSE: GT), down 7%.

    Pushing for a brief glimpse of sunshine were rubber and plastics company Myers Industries, Inc. (NYSE: MYE, up 2%, technical services and government contractor SAIC, Inc. (NYSE: SAI), up 2%, and aerospace company Ducommun, Inc. (NYSE: DCO), also up 2%.

    Political Commentary
    There is no political commentary this week but I did find a short, representative video of the current election season.

    Wax

    To enlarge the portfolio, please click on the image.


    To enlarge the free worksheet, please click on the image.

    Wax Ink is comprised of individual investors, NOT licensed or registered with ANY government agency. Please obtain the advice of a registered investment professional BEFORE considering any information obtained from this site.

    Disclosure: I am long SCX, USG, GT, MYE, SAI, DCO.

    Themes: Market Currents Stocks: AAPL, SCX, USG, GT, MYE, LDOS, DCO
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