The energy heavy Wax Ink Portfolio was down 0.2% for the week.
By comparison, the Dow was down 0.2%, the Nasdaq was up 1.1%, the S&P 500 was up 0.3%, the Russell 2000 was up 0.9%, and the Volatility Index, commonly known as the VIX, was up 1.1%.
Year to date, the Wax Ink portfolio is down 14.6% on a per share held basis, the Dow is up 0.4%, the Nasdaq is down 4.7%, the S&P 500 is up 0.4%, the Russell 2000 is down 2.1%, and the VIX is lower by 16.5%.
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 $28.68, making the current portfolio growth factor 13.49%.
Remember, my goal is to find the stocks of financially sound, well established companies, offering reasonable growth at a reasonable price. I believe that I am doing that in the energy sector.
I have started to include the 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) in my weekly performance reports and just wanted folks to realize what it is that I am talking about.
I was finally able to track down more accurate hydrocarbon data for some of the beginning of the year pricing which, when applied, ended up impacting the Crack Spread numbers. So if the week over week numbers seem "off" to you, that's the reason why.
WTI Crude ended the week at $47.75, up 3.3%, while Brent Crude ended the week at $48.72, up 2.9%, creating a crude price spread of $0.97, an decrease of 13.4% for the week. Distillate RBOB Gasoline ended the week at $1.6356, up 3.0%, and Heating Oil ended the week at $1.4614, up 6.3%, moving the Gulf Coast 3:2:1 Crack Spread to $18.93, up 5.7% for the week. Natural Gas ended the week at $2.06, down 1.9%.
Year to date WTI Crude is higher by 28.9%, Brent Crude is higher by 30.7%, Natural Gas is lower by 12.0%, RBOB Gasoline is higher by 28.7%, Heating Oil is higher by 32.4%, and the Gulf Coast 3:2:1 Crack Spread is higher by 32.2%.
Treasury and Bond Yields
The 5 Year Treasury ended the week at 1.34, down up 13.6%, while the 10 Year Treasury ended the week at 1.82, up 8.3%. The 5 Year AAA Municipal Bond ended the week at 0.76, up 13.4%, and the 10 Year AAA Municipal Bond ended the week at 1.36, up 30.8%. Lastly, the 5 Year AAA Corporate closed the week at 1.51, up 17.1%, with the 10 Year AAA Corporate ending the week up 7.4% at 2.46.
Year to date the 5 Year Treasury is down 23.0%, the 10 Year Treasury is down 19.1%, the 5 Year AAA Muni is down 38.7%, the 10 year AAA Muni is down 36.4%, the 5 Year AAA Corporate is down 20.5%, and the 10 Year AAA Corporate is down 15.8%.
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.
Gilead Sciences, Inc. (Nasdaq: GILD) - FYE 12/2015
Adams Resources and Energy, Inc. (NYSE: AE) - FYE 12/2015
Crane Company, Inc. (NYSE: CR) - FYE 12/2015
Estimate Revisions and Additions
Baseline value estimates were either created or revised this week for Gilead Sciences ($85-$95), Adams Resources ($65-$75), and Crane Company ($44-$45).
Have a great week.
Wax Ink is a baseline equity valuation company not licensed or registered with any government agency
Copyright © 2016 Wax Ink [more]