The Stingy News Weekly (02/23/2014)
| "All intelligent investing is value investing - to acquire more
than you are paying for. Investing is where you find a few great
companies and then sit on your ass." | |
| - Charlie Munger | |
Stingy Links
Now with less democracy
"Quebec is vowing to act fast and make changes that would give
the corporate boards of locally-headquartered companies more power
to reject hostile takeovers."
Now with more democracy
"Ottawa should reform its key corporate legislation - the Canada
Business Corporations Act - to entrench majority voting as a
legal requirement for all companies with public shareholders. The
CBCA is under review for potential amendments, so the time is
right to push for change. A fundamental reform of shareholder
democracy is long overdue. Annual board elections should be more than
an empty gesture."
The shorting premium
"Short-rebate fees are a strong predictor of the cross-section of
stock returns, both gross and net of fees. We document a large
"shorting premium"; the cheap-minus-expensive-to-short (CME)
portfolio of stocks has an average monthly gross return of 1.45%, a
0.92% net return, and a 1.55% four-factor alpha. We show that
short fees also interact strongly with the returns to seven of
the most well-known and large cross-sectional anomalies. These
anomalies disappear among the 80% of stocks with low short fees,
but are greatly amplified among those with high fees. We propose a
joint explanation for these findings wherein the shorting
premium is compensation for the short-side risk borne by the small
minority of investors who do most shorting. It therefore raises
prices rather than lowers them. We use the CME portfolio return as
a proxy for this short risk and demonstrate that a Fama-French
CME factor model largely captures the returns to all seven
anomalies within both high- and low-fee stocks."
The growing case against ETFs
"Whether you are racing, cruising, stopping or crashing, safe
driving comes down to a mix of equipment and personnel. The same
can be said for mutual funds and exchange-traded funds, and while
there is growing consensus that ETFs are the better vehicle,
there's growing evidence that the people using them may not be so
skilled behind the wheel. That's a real issue because a number of
studies seem to indicate that the 'better' investment vehicle
isn't delivering better results"
DOW 30 Value Screens
| High Dividend Yield Stocks | P/E | P/B | P/S | Yield | | AT&T (T) | 5 | 5 | 4 | 5 |
| Verizon (VZ) | 5 | 3 | 4 | 5 |
| Intel (INTC) | 4 | 4 | 3 | 5 |
| General Electric (GE) | 2 | 5 | 3 | 5 |
| Chevron (CVX) | 5 | 5 | 5 | 5 |
| McDonald's (MCD) | 3 | 1 | 2 | 5 |
| Cisco (CSCO) | 3 | 4 | 3 | 4 |
| Coca-Cola (KO) | 2 | 2 | 1 | 4 |
| Pfizer (PFE) | 5 | 4 | 1 | 4 |
| Merck (MRK) | 1 | 3 | 1 | 4 |
| Notes | More Info... |
| Low Price/Earnings Stocks | P/E | P/B | P/S | Yield | | Travelers (TRV) | 5 | 5 | 4 | 2 |
| AT&T (T) | 5 | 5 | 4 | 5 |
| Pfizer (PFE) | 5 | 4 | 1 | 4 |
| Chevron (CVX) | 5 | 5 | 5 | 5 |
| Goldman Sachs (GS) | 5 | 5 | 3 | 1 |
| Verizon (VZ) | 5 | 3 | 4 | 5 |
| IBM (IBM) | 4 | 1 | 3 | 2 |
| EI DuPont (DD) | 4 | 2 | 4 | 3 |
| Exxon Mobil (XOM) | 4 | 4 | 5 | 3 |
| Intel (INTC) | 4 | 4 | 3 | 5 |
| Notes | More Info... |
| Value Ratio Stocks | P/E | P/B | P/S | Yield | V.R. | | AT&T (T) | 5 | 5 | 4 | 5 | 1.73 |
| Verizon (VZ) | 5 | 3 | 4 | 5 | 2.69 |
| Chevron (CVX) | 5 | 5 | 5 | 5 | 2.90 |
| Pfizer (PFE) | 5 | 4 | 1 | 4 | 2.98 |
| Travelers (TRV) | 5 | 5 | 4 | 2 | 3.58 |
| Intel (INTC) | 4 | 4 | 3 | 5 | 3.59 |
| Cisco (CSCO) | 3 | 4 | 3 | 4 | 4.28 |
| EI DuPont (DD) | 4 | 2 | 4 | 3 | 4.47 |
| Microsoft (MSFT) | 3 | 2 | 1 | 4 | 4.69 |
| Exxon Mobil (XOM) | 4 | 4 | 5 | 3 | 4.77 |
| Notes | More Info... |
| US Stock Summary | Yield | P/E | V.R. | | AT&T (T) | Y | Y | Y |
| Chevron (CVX) | Y | Y | Y |
| Intel (INTC) | Y | Y | Y |
| Pfizer (PFE) | Y | Y | Y |
| Verizon (VZ) | Y | Y | Y |
| Cisco (CSCO) | Y | | Y |
| EI DuPont (DD) | | Y | Y |
| Exxon Mobil (XOM) | | Y | Y |
| Travelers (TRV) | | Y | Y |
| Coca-Cola (KO) | Y | | |
| General Electric (GE) | Y | | |
| Goldman Sachs (GS) | | Y | |
| IBM (IBM) | | Y | |
| McDonald's (MCD) | Y | | |
| Merck (MRK) | Y | | |
| Microsoft (MSFT) | | | Y |
| Notes... |
S&P/TSX60 Value Screens
| High Dividend Yield Stocks | P/E | P/B | P/S | Yield | | Crescent Point (CPG) | 1 | 4 | 1 | 5 |
| Canadian Oil Sands (COS) | 5 | 3 | 2 | 5 |
| Penn West Petroleum (PWT) | 0 | 5 | 3 | 5 |
| TransAlta (TA) | 0 | 4 | 4 | 5 |
| BCE Inc. (BCE) | 3 | 1 | 3 | 5 |
| Enerplus (ERF) | 0 | 5 | 2 | 5 |
| Shaw (SJR.B) | 4 | 2 | 3 | 5 |
| Rogers (RCI.B) | 4 | 1 | 3 | 5 |
| CIBC (CM) | 5 | 2 | 3 | 5 |
| National Bank (NA) | 5 | 3 | 3 | 5 |
| Notes | More Info... |
| Low Price/Earnings Stocks | P/E | P/B | P/S | Yield | | Metro (MRU) | 5 | 3 | 5 | 2 |
| National Bank (NA) | 5 | 3 | 3 | 5 |
| Bombardier (BBD.B) | 5 | 2 | 5 | 3 |
| CIBC (CM) | 5 | 2 | 3 | 5 |
| Bank of Montreal (BMO) | 5 | 4 | 3 | 4 |
| Canadian Oil Sands (COS) | 5 | 3 | 2 | 5 |
| Bank of Nova Scotia (BNS) | 5 | 3 | 2 | 4 |
| Agrium (AGU) | 5 | 3 | 5 | 3 |
| Brookfield (BAM.A) | 5 | 4 | 4 | 2 |
| Royal Bank (RY) | 4 | 2 | 2 | 4 |
| Notes | More Info... |
| Value Ratio Stocks | P/E | P/B | P/S | Yield | V.R. | | Canadian Oil Sands (COS) | 5 | 3 | 2 | 5 | 1.80 |
| National Bank (NA) | 5 | 3 | 3 | 5 | 2.34 |
| CIBC (CM) | 5 | 2 | 3 | 5 | 2.57 |
| Bank of Montreal (BMO) | 5 | 4 | 3 | 4 | 2.78 |
| Rogers (RCI.B) | 4 | 1 | 3 | 5 | 3.12 |
| Bank of Nova Scotia (BNS) | 5 | 3 | 2 | 4 | 3.14 |
| Shaw (SJR.B) | 4 | 2 | 3 | 5 | 3.54 |
| Royal Bank (RY) | 4 | 2 | 2 | 4 | 3.55 |
| Bombardier (BBD.B) | 5 | 2 | 5 | 3 | 3.62 |
| BCE Inc. (BCE) | 3 | 1 | 3 | 5 | 3.65 |
| Notes | More Info... |
| Canadian Stock Summary | Yield | P/E | V.R. | | CIBC (CM) | Y | Y | Y |
| Canadian Oil Sands (COS) | Y | Y | Y |
| National Bank (NA) | Y | Y | Y |
| BCE Inc. (BCE) | Y | | Y |
| Bank of Montreal (BMO) | | Y | Y |
| Bank of Nova Scotia (BNS) | | Y | Y |
| Bombardier (BBD.B) | | Y | Y |
| Rogers (RCI.B) | Y | | Y |
| Royal Bank (RY) | | Y | Y |
| Shaw (SJR.B) | Y | | Y |
| Agrium (AGU) | | Y | |
| Brookfield (BAM.A) | | Y | |
| Crescent Point (CPG) | Y | | |
| Enerplus (ERF) | Y | | |
| Metro (MRU) | | Y | |
| Penn West Petroleum (PWT) | Y | | |
| TransAlta (TA) | Y | | |
| Notes... |
The Rothery Report
(Learn More |
Subscribe)
The Rothery Report provides research on select deep-value stocks in
North America. Discover overlooked and undervalued stocks in quarterly
investment reports which provide detailed analysis of Canadian and
U.S. stocks. Weekly email news and additional updates keep
subscribers informed about new opportunities and developments.
|
|
