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Performance - Week Ending 08/16/2013


For some number of weeks I have been saying that individual investors, those managing their own portfolios, should start paying closer attention to stock prices.

To many, such a statement may seem a no brainer. But consider that the markets have been on an incredible 4 year upward run, and many investors, as was the case in the late 1990s, have developed the mindset that the markets are going to continue this upward movement forever.

That is simply not going to happen. Logically we all know that at some point the markets are going to correct. But the overwhelming majority are just not paying attention.

They continue to buy stocks with little to no consideration regarding value, and as such, often overpay for a stock.

That overpayment is simply camouflaged by the markets themselves as they continue their upward movement.

But let the markets correct, and in a matter of days those same investors that paid no attention to valuation, are going to find themselves with a host of stocks in which they are upside down.

I just hope YOU won't be in that situation.

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 working class investors avoid the investing pitfalls that seem to find me.

Enjoy your weekend


The Wax Ink Portfolio was up 0.1% for the week. By comparison the Dow was down 2.2%, the Nasdaq was down 1.6%, the S&P 500 was down 2.1%, the Russell 2000 was down 2.3%, and the Volatility Index, commonly known as the VIX, was up 7.2%.

Year to date, the Wax Ink portfolio is up 18.0%, the Dow is up 15.1%, the Nasdaq is up 19.3%, the S&P 500 is up 16.1%, the Russell 2000 is up 20.6%, and the VIX is down 5.7%.

The portfolio breakdown remains unchanged with roughly 70% of the portfolio in equities, 30% of the portfolio in cash, and 0% of the portfolio in bonds.
I finished baseline equity reviews on the following companies during the course of the week. My rating follows the ticker symbol.

PACCAR, Inc. (NASDAQ: PCAR) - Negative Investment Interest

Pentair, Ltd. (NYSE: PNR) - Negative Investment Interest

RadioShack Corporation (NYSE: RSH) - No Investment Interest

Reynolds American, Inc. (NYSE: RAI) - Negative Investment Interest

Ryder System, Inc. (NYSE: R) - Negative Investment Interest

Sigma-Aldrich Corporation (NASDAQ: SIAL) - Negative Investment Interest

This week's moving on up stocks were engineering/construction contractor URS Corporation (NYSE: URS), up 7%, electronics manufacturer Maxwell Technologies, Inc. (NASDAQ: MXWL), up 6%, and after-market car parts maker Dorman Products, Inc. (NASDAQ: DORM), up 4%.

This week's floaters in the bunch bowl were iron ore company Cliffs Natural Resouces, Inc. (NYSE: CLF), down 6%, building materials and telephone headset maker Griffon Corporation (NYSE: GFF), down 5%, and communications equipment maker Tellabs, Inc. (NASDAQ: TLAB), down 5%.

Not Performing
The top portfolio non-performers remain communications equipment company Tellabs, Inc., down 57% since being added to the portfolio, garage door and telephone headset maker Griffon Corporation, down 38% since being added to the portfolio, and iron ore company Cliffs Natural Resources, Inc., down 32% 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 URS, MXWL, DORM, CLF, GFF, TLAB.