The Wax Report - Week Ending 06/03/2016

The energy heavy Wax Ink Portfolio was up 0.2% for the week.

By comparison, the Dow was down 0.4%, the Nasdaq was up 0.2%, the S&P 500 was unchanged, the Russell 2000 was up 1.1%, and the Volatility Index, commonly known as the VIX, was up 2.7%.

Year to date, the Wax Ink portfolio is down 14.6% on a per share held basis, the Dow is up 2.2%, the Nasdaq is down 1.3%, the S&P 500 is up 2.7%, the Russell 2000 is up 2.4%, and the VIX is lower by 26.0%.

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 $29.24, making the current portfolio growth factor 11.81%.

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 $48.62, down 1.4%, while Brent Crude ended the week at $49.64, up 0.6%, creating a crude price spread of $1.02, an increase of 10300% for the week. Distillate RBOB Gasoline ended the week at $1.6075, down 1.5%, and Heating Oil ended the week at $1.4881, down 0.4%, moving the Gulf Coast 3:2:1 Crack Spread to $17.22, down 0.3% for the week. Natural Gas ended the week at $2.40, up 10.6%.

Year to date WTI Crude is higher by 31.3%, Brent Crude is higher by 33.2%, Natural Gas is higher by 2.6%, RBOB Gasoline is higher by 26.5%, Heating Oil is higher by 32.1%, and the Gulf Coast 3:2:1 Crack Spread is higher by 20.3%.

Treasury and Bond Yields
The 5 Year Treasury ended the week at 1.21, down 11.0%, while the 10 Year Treasury ended the week at 1.68, down 8.2%. The 5 Year AAA Municipal Bond ended the week at 0.83, down 2.4%, and the 10 Year AAA Municipal Bond ended the week at 1.38, down 15.3%. Lastly, the 5 Year AAA Corporate closed the week at 1.27, down 10.6%, with the 10 Year AAA Corporate ending the week down 5.0% at 2.27.

Year to date the 5 Year Treasury is down 30.5%, the 10 Year Treasury is down 25.3%, the 5 Year AAA Muni is down 33.1%, the 10 year AAA Muni is down 35.5%, the 5 Year AAA Corporate is down 33.2%, and the 10 Year AAA Corporate is down 22.3%.

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.

MGM Resorts International (NYSE: MGM) - FYE 12/2015

Wynn Resorts Ltd. (Nasdaq: WYNN) - FYE 12/2015

Caesars Entertainment Corporation (Nasdaq: CZR) - FYE 12/2015

Penn National Gaming, Inc. (Nasdaq: PENN) - FYE 12/2015

Chart Industries, Inc. (Nasdaq: GTLS) - FYE 12/2015

Estimate Revisions and Additions
Baseline value estimates were either created or revised this week for MGM Resorts ($17-$22), Wynn Resorts ($3-$9), Caesars Entertainment ($7-$9), Penn National Gaming ($8-$14), and Chart Industries ($38-$48).

Have a great week.

Wax

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