Stingy Investor The Rothery Report
  Home | Articles | Screens | Tools | Links | SNW | Rothery Report
 
MoneySaver Articles
 2 Graham Stocks for 2017
 3 Stingy Stocks for 2016
 5 Graham Stocks for 2016
 3 Stingy Stocks for 2015
 3 Graham Stocks for 2015
 3 Stingy Stocks for 2014
 4 Graham Stocks for 2014
 8 Stingy Stocks for 2013
 6 Graham Stocks for 2013
 9 Stingy Stocks for 2012
 8 Graham Stocks for 2012
 Simple Way 2011
 5 Stingy Stocks for 2011
 7 Graham Stocks for 2011
 Simple Way 2010
 5 Stingy Stocks for 2010
 8 Graham Stocks for 2010
 Simple Way 2009
 Timing Temptation
 19 Stingy Stocks for 2009
 4 Graham Stocks for 2009
 Simple Way 2008
 Active at Passive Prices
 Unbundling ETFs 2008
 5 Stingy Stocks for 2008
 5 Graham Stocks for 2008
 Is your index too active?
 Graham's Simple Way
 Canadian Graham Stocks
 5 Stingy Stocks for 2007
 8 Graham Stocks for 2007
 Top SPPs
 The Simple Way
 A hole in your IPO?
 Monkey Business
 8 Stingy Stocks for 2006
 Graham Stock Gainers
 Blue-Chip Blues
 Are Dividends Safe?
 SPPs for 2005
 Graham's Simplest Way
 Selling Graham Stocks
 RRSP Money Market Funds
 Stingy Stocks for 2005
 High Performance Graham
 Intelligent Indexing
 Unbundling Canadian ETFs
 A history of yield
 A Dynamic Duo
 Canadian Graham Stock
 Dividends at Risk
 Thrifty Value Stocks
 Stocks in Short Supply
 The New Dividend
 Hunting Goodwill
 SPPs for 2003
 RRSP: don't panic
 Desirable Dividends
 Stingy Selections 2003
 10 Graham Picks
 Growth Eh?
 Timing Disaster
 Dangerous Diversification
 The Coffee Can Portfolio
 Down with the dogs
 Stingy Selections
 Frugal Funds
 Graham Revisited
 Just Spend It
 Ticker Temptation
 Stock Mortality
 Focus on Fees
 SPPs for the Long Term
 Seeking Solid Stocks
 Relative Strength
 The VR Approach
 The Irrational Investor
 Value Investing
 Eye on PI

MoneySense Articles
 Cdn Top 200 2016
 US Top 500 2016
 Retirement 100: 2015
 Cdn Top 200 2015
 US Top 500 2015
 Retirement 100: 2014
 Cdn Top 200 2014
 US Top 500 2014
 Retirement 100: 2013
 Cdn Top 200 2013
 US Top 500 2013
 Retirement 100: 2012
 Buffett Buys
 FB IPO
 Stocks that pay
 Value in the S&P500
 Cdn Top 200 2012
 US Top 500 2012
 Retirement 100: 2011
 Where to invest $100k
 Where to invest $10k
 Summer Simple Way
 A crystal ball for stocks?
 Cheap & safe
 Risky business
 Cdn Top 200 2011
 US Top 500 2011
 Retirement 100
 Dividend investing
 Value investing
 Momentum investing
 Low P/E P/B
 Dividends
 Dividend growers
 Cdn Top 200 2010
 US Top 500 2010
 Graham's prescription
 Income 100: 2009
 The case for optimism
 Cdn Top 200 2009
 U.S. Top 500 2009
 Wicked investments
 Simply spectacular
 Income 2008
 Small stocks, big profits
 Cdn Top 200 2008
 US Top 500 2008
 Value that sizzles
 So simple it works
 Income 100
 No assembly required
 Investing by the book
 Cdn Top 200 2007
 US Top 500 2007
 Invest like the masters
 A simple way to get rich
 Top Trusts 2006
 Stocks for cannibals
 Car bites dogs
 Cdn Top 200 2006
 US Top 1000 2006
 So easy, so profitable
 Top Trusts 2005
 Dogs of the Dow
 Top 200 2005
 Money for nothing
 Yield of dreams
 Return of the master

Globe & Mail Articles
 Indexing advice
 Media-shy stocks
 Curse of size
 Market uncertainty
 Be even lazier
 Scary beats safe
 Small, illiquid, value
 Use the numbers
 What value is good value?
 Sculpt for value
 Value vs CAPE
 Graham Rules
 CAPE vs PeakE
 Top value ratio
 Low Beta
 Value and dividends
 Walter Schloss
 Try unloved AIG
 Why I'm a value investor
 New world of ETFs
 Low P/Es possible
 10 yielders
 Be happier
 Long-Short
 Dividend Downside
 Shiller's P/E
 Copycat investing
 Cashing in on class
 Index roulette
 Theory collides
 Diving too deep
 3 retirement villains
 Scourge of inflation
 Economic omens
 Analyst Expectations
 Value stock scarcity
 It's all in the index
 How to pick good funds
 Low Beta Wins
 Hunt for dividend stocks
 Think garage sale

Advisor's Edge Articles
 Passive Rebundling
 Doing the math

Norm Speaks
Flip Books



Stingy Selections & Dartboard Dynamos 03

Last year I attempted to achieve success by hand picking twelve value stocks from the S&P500. Well, I managed to avoid the success part. My twelve picks lost an average of 1.92% from December 5, 2001 to December 5, 2002. Mind you, this was much better than the S&P500 which fell by 22.12% over the same period. Normally outperforming the index by 20.20% would be cause for celebration but a loss is still a loss. To add insult to injury, the stocks selected by my trusty dartboard gained 2.87% over the same period.

Last year's stingy picks: Alberto-Culver (ACV), Allegheny Technologies (ATI), Cardinal Health (CAH), CVS Corp (CVS), Engelhard (EC), FedEx (FDX), Humana (HUM), SYSCO Corp (SYY), VF Corp (VFC), W.W. Grainger (GWW), WellPoint Health Networks (WLP) and Worthington Industries (WOR).

Last year's dartboard picks: Alberto-Culver (ACV), Big Lots (BLI), Burlington Resources (BR), Charter One Financial (CF), Citizens Communications Co (CZN), FMC Corp (FMC) HCA Inc. (HCA), Hercules Inc (HPC), Lincoln National Corp (LNC), Meredith Corp (MDP), UnitedHealth Group (UNH) and Zions Bancorp (ZION).

Undaunted by my crushing defeat, I've selected a new list of stingy picks. This year, I'm sticking to S&P500 stocks with debt-to-equity ratios of less than 0.5, current ratios of more than two, and interest coverage ratios of more than two. Also, I demand positive cash flow, some earnings and a price-to-sales ratio of less than one.

With the aid of the MSN.com stock screener, ten stocks were found that passed my tests on December 5, 2002. I should note that I currently own shares in Apple Computer due to its very strong balance sheet.

Stingy Picks: Apple Computer (AAPL), Circuit City Group (CC), Crane Co. (CR), Dollar General Corporation (DG), Limited Brands, Inc. (LTD), Liz Claiborne, Inc (LIZ), Nucor (NUE), Quintiles Transnational Corp. (QTRN), Reebok International Ltd. (RBK) and VF Corporation (VFC).

My nemesis is back with ten picks from S&P500.

The Dartboard's picks: AFLAC Incorporated (AFL), AmerisourceBergen Corporation (ABC), Bank of New York Company (BK), Chiron Corporation (CHIR), Consolidated Edison (ED), Fiserv (FISV), Illinois Tool Works (ITW), KeySpan Corporation (KSE), QUALCOMM Incorporated (QCOM) and United Technologies Corporation (UTX)

Which portfolio will win? Value or blind luck? Only time will tell.

Date: Jan 2003

Additional Resources:


 
Discover top U.S. and Canadian value stocks in
The Rothery Report
About Legal Contact Us
Disclaimers: Consult with a qualified investment adviser before trading. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. More...