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The Wax Report - Week Ending 08/12/2016

|Includes: AN, ANW, Matson, Inc. (MATX), RIG, UNT

The very poorly managed Wax Ink Portfolio was up 0.1% for the week.

By comparison, the Dow was up 0.2%, the Nasdaq was up 0.2%, the S&P 500 was up 0.1%, the Russell 2000 was down 0.1%, and the Volatility Index, commonly known as the VIX, was up 1.4%.

Year to date, the Wax Ink portfolio is down 15.3% on a per share held basis, the Dow is up 6.6%, the Nasdaq is up 4.5%, the S&P 500 is up 6.9%, the Russell 2000 is up 8.3%, and the VIX is lower by 36.6%.

Portfolio Summary
The portfolio breakdown is roughly 55% cash, 45% equities, and 0% bonds. The current cash value on a per share basis is $28.94 and the current equity value on a per share basis is $23.44 making the average per share price $52.38. The average baseline valuation estimate of all equities currently held in the Wax Ink Portfolio is $30.92 and the average market valuation of all equities held in the Wax Ink Portfolio was $29.93, making the current portfolio equilibrium factor (3.21%).

Hydrocarbon Prices
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 $44.47, up 6.4%, while Brent Crude ended the week at $46.97, up 6.1%, creating a crude price spread of $2.48, a change of 0.4% for the week. Distillate RBOB Gasoline ended the week at $1.3709, down 0.4%, and Heating Oil ended the week at $1.4086, up 7.0%, moving the Gulf Coast 3:2:1 Crack Spread to $13.62, down 10.2% for the week. Natural Gas ended the week at $2.60, down 6.1%.

Year to date WTI Crude is higher by 20.1%, Brent Crude is higher by 26.0%, Natural Gas is higher by 11.1%, RBOB Gasoline is higher by 7.9%, Heating Oil is higher by 25.1%, and the Gulf Coast 3:2:1 Crack Spread is lower by 4.9%.

Treasury and Bond Yields
The 5 Year Treasury ended the week at 1.07, down 4.5%, while the 10 Year Treasury ended the week at 1.49, down 5.1%. The 5 Year AAA Municipal Bond ended the week at 0.87, down 2.2%, and the 10 Year AAA Municipal Bond ended the week at 1.43, down 4.7%. Lastly the rear, the 5 Year AAA Corporate closed the week at 1.41, down 1.4%, with the 10 Year AAA Corporate ending the week down 2.2% at 2.26.

Year to date the 5 Year Treasury is down 38.5%, the 10 Year Treasury is down 33.8%, the 5 Year AAA Muni is down 29.8%, the 10 year AAA Muni is down 33.2%, the 5 Year AAA Corporate is down 25.8%, 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
Worksheets were either created or updated during the week for the following companies.

Matson, Inc. (NASDAQ: MATX) - FYE 12/2015
AutoNation, Inc. (NYSE: AN) - FYE 12/2015
Aegean Marine Petroleum Network, Inc. (NYSE: ANW) - FYE 12/2015
Transocean, plc (NYSE: RIG) - FYE 12/2015
Unit Corporation (NYSE: UNT) - FYE 12/2015

Baseline Valuation Estimates
Baseline valuation estimates are determined through fundamental analysis of the listed company's financial information. Because these valuations are never exact, what is presented here is a baseline valuation range. Baseline valuation estimates were either created or updated during the week for the following companies:

Matson, Inc. - $31-$37
AutoNation, Inc. - $44-$50
Aegean Marine Petroleum Network, Inc. - $20-$26
Transocean, plc - $81-$87
Unit Corporation - $82-$100

Growth Only Valuation Estimates
Growth only valuations are determined utilizing current pricing levels, year over year earnings growth, dividend yield, the current PE ratio, and an earnings growth estimate. Because growth only valuations are EXTREMELY volatile, what is presented here is a single growth only valuation estimate. Growth only valuation estimates were either created or updated during the week for the following companies:

Matson, Inc. - $58
AutoNation, Inc. - $61
Aegean Marine Petroleum Network, Inc. - $6
Transocean, plc - $181
Unit Corporation - $815

Investment Summaries
Investment summaries are determined based on fundamental valuation of the underlying equity AND a minimum hold of 60 months (5 years). Investment summaries were issued during the week for the following companies:

Matson, Inc. - Neutral - the current baseline valuation and key performance indicators (KPIs) are mixed for investment consideration at this time (NYSEARCA:HOLD)

AutoNation, Inc. - Neutral - the current baseline valuation and key performance indicators (KPIs) are mixed for investment consideration at this time

Aegean Marine Petroleum Network, Inc. - Positive - the current baseline valuation and key performance indicators (KPIs) favor investment consideration at this time (Buy)

Transocean, plc - Positive - the current baseline valuation and key performance indicators (KPIs) favor investment consideration at this time (Buy)

Unit Corporation - Positive - the current baseline valuation and key performance indicators (KPIs) favor investment consideration at this time (Buy)

Have a great week.

Wax

Wax Ink is a baseline equity valuation company not licensed or registered with any government agency
Copyright © 2016 Wax Ink

Supporting Documents

  1. Wax_Ink_Portfolio_-_081216.pdf

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.