Performance - Week Ending 02/19/2016

Performance - Week Ending 02/19/2016
The Wax Ink Portfolio was down 1.6% for the week.

By comparison, the Dow was up 2.6%, the Nasdaq was up 3.8%, the S&P 500 was up 2.8%, the Russell 2000 was up 3.9%, and the Volatility Index, commonly known as the VIX, was down 19.2%.

Year to date, the Wax Ink portfolio is down 13.2%, the Dow is down 5.9%, the Nasdaq is down 10.0%, the S&P 500 is down 6.2%, the Russell 2000 is down 11.1%, and the VIX is higher by 12.7%.

The portfolio breakdown is 60% cash, 40% equities, and 0% bonds.

Baseline Valuation Estimates
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 company ANNUAL financial information as filed with the U.S. Securities and Exchange Commission.

The average baseline valuation estimate of all equities currently held in the Wax Ink Portfolio is $37.17. For the current week ending, the average market valuation of all equities currently held in the Wax Ink Portfolio is $26.98, making the current value spread (27.41%).

Fair Warning
WR Grace completed the separation of its construction products business on February 3, 2016 via a one for one distribution meaning for every share of WR Grace stock I owned, I received a like number of shares in the new company. The name of the new company is GCP Applied Technologies, Inc. (NYSE: GCP) and began trading on February 4, opening at $16.27. I am in the process of figuring out how to adjust the cost basis of my WR Grace shares and create a cost basis for the new shares. But for now I have added the new shares to the portfolio.

Hydrocarbon Prices
WTI Crude ended the week at $29.64, up 0.7%, while Brent Crude ended the week at $33.01, down 1.0%, creating a crude price spread of $3.37. On the other side of the floor Natural Gas ended the week at $1.80, down 8.6%, and RBOB Gasoline ended the week at $0.9594, down 8.0%.

Year to date WTI Crude is down 20.0%, Brent Crude is down 11.5%, Natural Gas is down 23.1%, and RBOB Gasoline is down 24.5%.

Treasury and Bond Yields
The 5 Year Treasury ended the week at 1.21, up 2.5%, while the 10 Year Treasury ended the week at 1.73, unchanged. The 5 Year AAA Municipal Bond ended the week at 0.64, unchanged, and the 10 Year AAA Municipal Bond ended the week at 1.38, down 10.4%. Lastly, the 5 Year AAA Corporate closed the week at 1.23, up 33.7%, with the 10 Year AAA Corporate ending the week at 2.47, down 5.0%.

Year to date the 5 Year Treasury is down 30.5%, the 10 Year Treasury is down 23.1%, the 5 Year AAA Muni is down 48.4%, the 10 year AAA Muni is down 35.5%, the 5 Year AAA Corporate is down 35.3%, and the 10 Year AAA Corporate is down 15.4%.

Weekly Winners
This week's portfolio winners were municipal construction contractor Layne Christensen (Nasdaq: LAYN), up 13%, offshore supply boat company Tidewater, Inc. (NYSE: TDW), up 9%, and construction products company GCP Applied Technologies (NYSE: GCP), up
4%.

Weekly Losers
This week's portfolio losers were cigarette paper maker Shweitzer-Maudit International (NYSE: SWM), down 20%, independent oil and gas producer Marathon Oil (NYSE: MRO), down 10%, and agricultural chemicals company Agrium, Inc. (NYSE: AGU), down
1%.

Portfolio Duds
The portfolio's worst performing stocks remain municipal construction company Layne Christensen down 63% since being added to the portfolio, and offshore supply boat company Tidewater, down 58% since being added to the portfolio, independent oil and gas company Marathon Oil Corporation, down 54% since being added to the portfolio, building materials company Griffon Corporation down 20% since being added to the portfolio, and offshore construction contractor McDermott International down 22% since being added to the portfolio.

Baseline Valuation Worksheets
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.

McCormick and Company Incorporated (NYSE: MKC) - FYE 11/2015

Hormel Foods Corporation (NYSE: HRL) - FYE 10/2015

Estimate Revisions and Additions
Baseline value estimates were either created or revised this week for McCormick and Company ($41-$44), and Hormel Foods ($39-$46).

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