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Performance - Week Ending 02/15/2013

Every week in this tiny space, I recap what happened with the Wax Ink Portfolio, and I try to capture the spirit of macroeconomic events that play a huge role in the weekly direction of the portfolio.

In the end it all seems to come down to what spin doctor you want to believe, since as far as I am concerned, it is all a bunch of smoke and mirrors that the average investor simply cannot control.

For example, it was reported that January industrial production was 0.1% lower than expected. All of the market electrons jumped into their electron buggies and started heading for the exits.

Then it was announced that capacity utilization was 0.2% better than expected. The break lights on the fleeing electron buggies lit up, and pandemonium ensued as all of the electronics fleeing the markets tried to get turned around to head back to the markets.

The market electrons are rushing back into the market when preliminary consumer sentiment numbers that were higher than expected were announced. The market electrons started picking up speed after that.

Then Empire Manufacturing Survey numbers were announced showing a move to 10 from the previous (-7.8). The market electrons were now in the process of becoming truly orgasmic.

But alas nirvana was simply not meant to be as disappointing fourth quarter economic numbers were announced by France, Germany, Greece, Italy, and Portugal played the role of coitus interruptus, sending the market electrons to the Fred Tucker hell of market electron hell.

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.

Those of us that actually work for a living know that saving money is hard. Investing that saved money is even harder, and understanding the risks before you invest is harder still.

I can provide you with a baseline equity report, which you can use as a starting point for your own research, but you must do the work. With that, I cannot help you.

You need to accept that none of this is easy. It requires effort, patience, and dedication.

You also need to know now, managing your own not for everybody.

Aside from some worksheets, the only other thing I can do is let you follow along with me and my investing struggles as I manage The Wax Ink Portfolio.

So if this "place to see" interests you, welcome.

On the other hand, if you are looking for market commentary intermixed with the bullshit that is politics, I suggest you try Dinah's Place.

The Wax Ink Portfolio declined by 1.1% for the week, while the Dow closed down 0.1%, the Nasdaq was down 0.1%, the S&P 500 was up 0.1%, and the Russell 2000 was up 1.0%.

Year to date, the portfolio is up 6.5%, the Dow is up 6.7%, the Nasdaq is up 5.7%, the S&P 500 is up 6.6% and the Russell 2000 is up 8.7%.

The portfolio breakdown remains the same, with 70% of the portfolio in equities, 30% of the portfolio in cash, and 0% of the portfolio in bonds.

I continue to research stocks, with 35 companies currently on my research list, adding oilfield supply company National Oilwell Varco, Inc. (NYSE: NOV).

This week's moving on up stocks were building materials maker USG Corporation (NYSE: USG), up 8%, trucking company Arkansas Best Corporation (Nasdaq: ABFS), up 5%, and after market auto parts maker Dorman Products, Inc. (Nasdaq: DORM), up 4%.

This week's turd in the bunch bowl stocks were iron ore company Cliff's Natural Resources, Inc. (NYSE: CLF), down 21%, Ag chemicals company Agrium, Inc. (NYSE: USG), down 7%, and ultra-capacitor maker Maxwell Technologies, Inc. (Nasdaq: MXWL), down 5%.

Not Performing
As I note every week, there are several portfolio stocks that simply are not performing. Once again this week, communications equipment company Tellabs, Inc. did nothing and remains down 61% since I added it to the portfolio.

Also continuing to piss me off are government contractor SAIC, Inc. (NYSE: SAI), down 38%, and garage door/telephone headset maker Griffon Corporation (NYSE: GFF), down 35%.

As I have been saying, over the course of the next several months, two of these non-performing stocks will have reached or exceeded their 5 year portfolio anniversary. While I still believe in the stocks, it may be time to dump them. I will be making that decision by early summer.


Wax Ink is a baseline equity research company 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.