Baseline equity research, all cap value, Long Only, Value
Contributor Since 2007
I manage Wax Ink, an equity research firm comprised of individual investors not licensed or registered with any government agency. I have been an all cap value investor and independent equity researcher for the past 30 years.
The energy heavy Wax Ink Portfolio was up 0.3% for the week.
By comparison, the Dow was up 0.3%, the Nasdaq was down 1.0%, the S&P 500 was down 0.1%, the Russell 2000 was unchanged, and the Volatility Index, commonly known as the VIX, was up 26.4%.
Year to date, the Wax Ink portfolio is down 14.3% on a per share held basis, the Dow is up 2.5%, the Nasdaq is down 2.3%, the S&P 500 is up 2.6%, the Russell 2000 is up 2.5%, and the VIX is lower by 6.5%.
The portfolio breakdown is roughly 57% cash, 43% equities, and 0% bonds.
Portfolio Growth Potential
The average baseline valuation estimate of all equities currently held in the Wax Ink Portfolio is $33.15. For the current week ending, the average market valuation of all equities held in the Wax Ink Portfolio was $29.43, making the current portfolio growth factor 11.23%.
Two numbers often watched by oil traders are Crude Spread (Brent Crude less WTI Crude) as well as the Gulf Coast Crack Spread (two barrels of gasoline + one barrel of heating oil - three barrels of crude oil) / 3). These numbers are now apart of The Wax Report.
WTI Crude ended the week at $49.07, up 0.9%, while Brent Crude ended the week at $50.54, up 1.8%, creating a crude price spread of $1.47, an increase of 44.1% for the week. Distillate RBOB Gasoline ended the week at $1.5596, down 3.0%, and Heating Oil ended the week at $1.5160, up 1.9%, moving the Gulf Coast 3:2:1 Crack Spread to $15.82, down 8.1% for the week. Natural Gas ended the week at $2.56, up 6.7%.
Year to date WTI Crude is higher by 32.5%, Brent Crude is higher by 35.6%, Natural Gas is higher by 9.4%, RBOB Gasoline is higher by 22.7%, Heating Oil is higher by 34.6%, and the Gulf Coast 3:2:1 Crack Spread is higher by 10.5%.
Treasury and Bond Yields
The 5 Year Treasury ended the week at 1.15, down 5.0%, while the 10 Year Treasury ended the week at 1.62, down 3.6%. The 5 Year AAA Municipal Bond ended the week at 0.77, down 7.2%, and the 10 Year AAA Municipal Bond ended the week at 1.33, down 3.6%. Lastly, the 5 Year AAA Corporate closed the week at 1.34, up 5.5%, with the 10 Year AAA Corporate ending the week down 0.4% at 2.26.
Year to date the 5 Year Treasury is down 33.9%, the 10 Year Treasury is down 28.0%, the 5 Year AAA Muni is down 37.9%, the 10 year AAA Muni is down 37.9%, the 5 Year AAA Corporate is down 29.5%, and the 10 Year AAA Corporate is down 22.6%.
Baseline Valuation Estimates and Worksheets
Baseline Valuation Estimates are initial valuations which Accredited Investors, after completing their own due diligence, can either increase or decrease in accordance with their individual risk tolerance or investing philosophy.
Financial data used in the creation of each Baseline Valuation Estimate is the most recent SEC 10-K ANNUAL financial data as reported to the U.S. Securities and Exchange Commission.
Archived worksheets may be downloaded by going to the Worksheets page at the site and selecting an industry which will move you to all of the worksheets I have updated for the selected industry.
Worksheets were either created or updated last week for the following companies. Please note that worksheets are updated or created basis the most current SEC 10-K ANNUAL filing.
Estimate Revisions and Additions
Baseline value estimates were either created or revised this week for Valmont ($65-$73), Owens-Illinois ($7-$12), and Sealed Air ($28-$29).
Have a great week.
Wax Ink is a baseline equity valuation company not licensed or registered with any government agency
Copyright © 2016 Wax Ink
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.