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The Wax Report - Week Ending 09/08/2017
The stellarly managed Wax Ink Portfolio was down 0.3% for the week.

By comparison, the Dow was down 0.9%, the Nasdaq was down 1.2%, the S&P 500 was down 0.6%, the Russell 2000 was down 1.0%, and the Volatility Index, commonly known as the VIX, was up 19.8%.

Year to date (there only 160 days until The Chinese New Year), the Wax Ink portfolio is up 13.8%, while the Dow is up 10.3%, the Nasdaq is up 18.2%, the S&P 500 is up 9.9%, the Russell 2000 is up 3.1%, and the VIX is lower by 13.7%.

Portfolio Summary
The portfolio breakdown is roughly 54% cash, 46% equities, and 0% bonds. The current value of portfolio cash on a per share basis is $29.99 and the current value of portfolio equities on a per share basis is $25.50, making the average per share held price $55.49.

The average baseline valuation estimate of all equities currently held in the Wax Ink Portfolio is $24.69 and the average market closing price of all equities held in the Wax Ink Portfolio is $26.26, making the current portfolio fair value factor (6.4%).

END OF THE LINE
I have been producing the Wax Report for almost 12 years, and this is the last one. It has been an incredible ride being able to share my investing successes and failures with all of you and I cannot thank you enough for the encouragement and the cussing. I have thoroughly enjoyed it all.

As happens in life, the end of one thing is the beginning of something new, and such is the case with what you have been seeing in this space for the past 12 years. In the coming months I will be working through changes in the Wax Report that will more closely track my Buy and Sell opinions. The format I have put together is still being defined but that is the direction I have chosen to go. Hopefully I will see you all again soon, right here.

Hydrocarbon Prices
WTI Crude ended the week at $47.48, up 0.4%, while Brent Crude ended the week at $53.78, up 2.0%, creating a crude price spread of $6.30, an increase of 15.4%. Distillate RBOB Gasoline ended the week at $1.6476, down 5.7%, and Heating Oil ended the week at $1.7657, up 1.1%, moving the Gulf Coast 3:2:1 Crack Spread (two barrels of gasoline + one barrel of heating oil – three barrels of crude oil) / 3) to $23.37, a decrease of 10.5% for the week. Henry Hub Natural Gas ended the week down 5.9% at $2.89.

Year to date WTI Crude is lower by 11.6%, Brent Crude is lower by 5.4%, the WTI/Brent Crude Spread is higher by 103.2%, Henry Hub Natural Gas is lower by 22.3%, RBOB Gasoline is lower by 1.4%, Heating Oil is higher by 2.2%, and the Gulf Coast 3:2:1 Crack Spread is higher by 34.4%.

Treasury and Bond Yields
The 5 Year Treasury ended the week at 1.65, down 6.3% while the 10 Year Treasury ended the week at 2.05, down 5.5%. The 5 Year AAA Municipal Bond ended the week at 1.69, up 5.6%, and the 10 Year AAA Municipal Bond ended the week down 1.2%, at 2.40. Lastly, the 5 Year AAA Corporate closed the week unchanged at 1.90, with the 10 Year AAA Corporate ending the week down 1.1% at 2.74.

Year to date the 5 Year Treasury is down 12.7%, the 10 Year Treasury is down 15.3%, the 5 Year AAA Muni is down 4.0%, the 10 year AAA Muni is down 6.3%, the 5 Year AAA Corporate is down 7.8%, and the 10 Year AAA Corporate is down 9.6%.

Fair Warning/Disclosure
I am a deep value, long-term buy and hold investor with an average equity holding period of 60 months (1825 days) with no position in any stock mentioned in this report.

Worksheet Changes and Notes
The worksheet continues to evolve, with changes to the RETURN ON $10K section becoming more centered on a 5 year period as opposed to a 10 year period, something you will start to notice over the next several weeks. I also continue to shorten the WHAT THEY DO section, trying to keep that information to the barest of minimums, and have added a RESEARCH NOTES section.

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.

Hawkins, Inc. (Nasdaq: HWKN) - FYE 03/2017
Bristow Group, Inc. (NYSE: BRS) - FYE 03/2017
Plantronics, Inc. (NYSE: PLT) - FYE 03/2017
Friedman Industries, Inc. (AMEX: FRD) - FYE 03/2017


Have a strong week!!
Wax

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