Stingy Investor Contact - Subscribe - Login
  Home | Articles | Screens | Links | SNW | Rothery Report
 
The Stingy News Weekly (01/09/2011)


"The chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions."
- Benjamin Graham


Stingy Links

Dire States
"'If something cannot go on forever, it will stop.' States with a permanent mismatch between taxes and spending will not be able to squeak by on budget gimmicks and backdoor borrowing forever either they'll find a way to bring their budgets into balance, or they'll run out of money and default on their obligations. The path they choose will make a big difference in the future of the states, and of their citizens - and in the life of the nation as a whole."


Government workers of the world unite!
"It would be a mistake to write off the public-sector unions. They are masters of diverting attention from strategic to tactical questions. Undoubtedly the unions will lose some of their privileges over the coming years the scale of the debt crisis makes this inevitable. But will governments have the courage to tackle the root causes of the problem (such as pensions) rather than dealing with secondary problems (such as wages)? And will they dare to tackle questions of power rather than just pay and perks? If they are to claim victory in the coming fight, they need not just to restore the public finances to health. They also need to breathe the spirit of innovation into Leviathan."


Disassembling, Reassembling Hoover Dam
"Systematically tearing down such a massive edifice will create at least 25,000 jobs over the next five years. And then reassembling it, using all the same pieces in the exact same configuration, will employ another 25,000 workers. America is back"


Buffett on Berkshire, Succession and America
"Finally, he talked a little about why he was optimistic about the future of the United States: “We had four million people here in 1790,” he tells Vanity Fair. “We’re not more intelligent than people in China, which then had 290 million people, or Europe, which had 50 million. We didn’t work harder, we didn’t have a better climate, and we didn’t have better resources. But we definitely had a system that unleashes potential. This system works. Since then, we’ve been through at least 15 recessions, a civil war, a Great Depression. … All of these things happen. But this country has optimized human potential, and it’s not over yet."


Financial Crisis Q and A
"The panic in 2007 was not observed by anyone other than those trading or otherwise involved in the capital markets because the repo market does not involve regular people, but firms and institutional investors. So, the panic in 2007 was not like the previous panics in American history (like the Panic of 1907, shown below, or that of 1837, 1857, 1873 and so on) in that it was not a mass run on banks by individual depositors, but instead was a run by firms and institutional investors on financial firms. The fact that the run was not observed by regulators, politicians, the media, or ordinary Americans has made the events particularly hard to understand. It has opened the door to spurious, superficial, and politically expedient “explanations” and demagoguery."


Goldman Pitch vs Nigerian Scam
"Of course, unlike Nigerian email scams, the solicitation came from a Goldman money manager rather than a random stranger. And Goldman isn’t offering a scam but an investment opportunity so hot that the investment bank had to stop taking orders, as our colleagues reported this afternoon. But we couldn’t help note some similar language used by Goldman and purported Nigerian princes. Read and compare"


Penny Stock Risk Premium Has Wrong Sign
"In case you didn't know, penny stocks are lousy investments high risk, negative return."


When States Default
"Land values soared. States splurged on new programs. Then it all went bust, bringing down banks and state governments with them. This wasn't America in 2011, it was America in 1841, when a now-forgotten depression pushed eight states and a desolate territory called Florida into the unthinkable: They defaulted on debts."


Value Averaging and Automated Bias
"Value averaging is a formula investment strategy which can be shown to achieve a lower average cost and higher IRR than alternative strategies. However, in contrast to previous studies, this paper shows that this does not lead to higher expected profits. Instead an “averaging down” effect systematically biases the IRR up and the average purchase cost down. The same bias applies to a wide class of investment strategies (including dollar cost averaging) where the amount invested in each period is negatively correlated with the return made to date."


Hindsight Bias in Dollar-Weighted Returns
"Dollar-weighted returns have been used as evidence that consistently bad timing drags investor returns significantly below the buy-and-hold market return, and that consequently the equity risk premium is overstated. In this paper we show that this approach is affected by hindsight bias in the dollar-weighted return. We present an alternative method which quantifies and removes this effect. The results show that bad timing has actually had little impact on investor returns from mainstream US equities. We conclude that previous estimates of the equity risk premium remain valid."



DOW 30 Value Screens

High Dividend Yield StocksP/EP/BP/SP/DYield
AT&T (T)55355
Verizon (VZ)13555
Pfizer (PFE)14255
Merck (MRK)34255
Kraft (KFT)55455
Johnson & Johnson (JNJ)42144
EI DuPont (DD)32344
McDonald's (MCD)21144
Chevron (CVX)54444
Intel (INTC)54144
Notes | More Info...


Value Ratio StocksP/EP/BP/SP/DVR
AT&T (T)55351.35
Travelers (TRV)55432.89
Kraft (KFT)55453.26
Merck (MRK)34253.44
Chevron (CVX)54443.51
Intel (INTC)54143.72
Johnson & Johnson (JNJ)42143.78
EI DuPont (DD)32344.47
McDonald's (MCD)21144.97
Procter & Gamble (PG)23235.29
Notes | More Info...


Graham-Lite StocksP/EP/BP/DG$dG$(%)
Travelers (TRV)55396.1780.34
AT&T (T)55539.6737.50
JP Morgan Chase (JPM)45157.8132.48
Kraft (KFT)55534.019.05
Chevron (CVX)54497.977.44
Notes | More Info...


Top US StocksYieldV.R.Graham
AT&T (T)YYY
Chevron (CVX)YYY
Kraft (KFT)YYY
EI DuPont (DD)YY
Intel (INTC)YY
Johnson & Johnson (JNJ)YY
McDonald's (MCD)YY
Merck (MRK)YY
Travelers (TRV)YY
JP Morgan Chase (JPM)Y
Pfizer (PFE)Y
Procter & Gamble (PG)Y
Verizon (VZ)Y
Notes...



S&P/TSX60 Value Screens

High Dividend Yield StocksP/EP/BP/SP/DYield
Transalta (TA)15455
BCE (BCE)43455
Bank of Montreal (BMO)54355
Sun Life (SLF)55555
Telus (T)43455
Husky Energy (HSE)34455
CIBC (CM)52355
TransCanada (TRP)24255
Shaw Comm Cl.B (SJR.B)31255
Power Corp (POW)25555
Notes | More Info...


Value Ratio StocksP/EP/BP/SP/DVR
Bank of Montreal (BMO)54352.55
Sun Life (SLF)55552.77
BCE (BCE)43452.95
CIBC (CM)52352.95
National Bank (NA)53343.00
Telus (T)43453.32
Encana (ECA)55343.51
Rogers Comm Cl.B (RCI.B)51443.70
Shaw Comm Cl.B (SJR.B)31253.88
Husky Energy (HSE)34454.12
Notes | More Info...


Graham-Lite StocksP/EP/BP/DG$dG$(%)
Encana (ECA)55439.7839.73
Nexen (NXY)55129.1132.80
Sun Life (SLF)55539.3028.42
Canadian Tire (CTC.A)45370.044.44
Bank of Montreal (BMO)54559.462.12
National Bank (NA)53469.290.99
Notes | More Info...


Top Canadian StocksYieldV.R.Graham
Bank of Montreal (BMO)YYY
Sun Life (SLF)YYY
BCE (BCE)YY
CIBC (CM)YY
Encana (ECA)YY
Husky Energy (HSE)YY
National Bank (NA)YY
Shaw Comm Cl.B (SJR.B)YY
Telus (T)YY
Canadian Tire (CTC.A)Y
Nexen (NXY)Y
Power Corp (POW)Y
Rogers Comm Cl.B (RCI.B)Y
TransCanada (TRP)Y
Transalta (TA)Y
Notes...



The Rothery Report
(Learn More | Subscribe Today)

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.

Rothery Report Performance
(03/31/2001 to 09/30/2010)
Average Capital Gain
35.2%



Stingy News Weekly
The Latest Edition

Get the Stingy News
via email with ...
The Rothery Report

2017
  09: 04 11 17
  08: 07 16 20 28
  07: 02 09 16 23 30
  06: 04 11 18 26
  05: 07 14 21 28
  04: 02 09 16 23 30
  03: 05 12 19 26
  02: 05 12 19 26
  01: 02 07 15 22 29
2016
  12: 04 11 18 26
  11: 06 13 20 27
  10: 02 09 16 23 29
  09: 04 11 18 25
  08: 07 14 21 28
  07: 03 10 17 24 31
  06: 05 11 19 26
  05: 01 08 15 22
  04: 03 10 17 24
  03: 06 13 20 27
  02: 07 14 21 28
  01: 03 10 17 24 31
2015
  12: 06 13 20 27
  11: 01 08 15 22 29
  10: 04 10 18 25
  09: 05 13 20 27
  08: 17 23 30
  07: 05 12 19 26 31
  06: 06 14 21 28
  05: 03 09 17 23 31
  04: 04 12 19 26
  03: 01 07 15 22 28
  02: 07 14 21
  01: 04 12 18 25 31
2014
  12: 06 14 21 28
  11: 02 08 16 23 30
  10: 04 11 19 26
  09: 06 14 19 28
  08: 10 16 24 29
  07: 05 12 19 25
  06: 08 15 20 29
  05: 04 11 18 25 30
  04: 06 12 20 27
  03: 02 09 16 23 30
  02: 01 09 16 23
  01: 05 12 18 26
2013
  12: 02 09 16 30
  11: 03 11 17 24
  10: 06 14 20 27
  09: 09 16 23 30
  08: 04 10 25
  07: 07 15 21 28
  06: 03 09 16 23 30
  05: 05 12 19 26
  04: 07 14 21 28
  03: 03 11 17 24 31
  02: 04 10 17 24
  01: 06 13 20 27
2012
  12: 02 09 16 23 30
  11: 04 11 18 25
  10: 07 14 21 28
  09: 02 09 16 23 30
  08: 05 12 19 26
  07: 01 08 15 22 29
  06: 03 10 17 24
  05: 07 13 20 27
  04: 01 08 15 22 29
  03: 04 11 18 25
  02: 05 12 19 26
  01: 01 08 15 22 29
2011
  12: 04 11 18 25
  11: 06 13 20 27
  10: 02 09 16 23 30
  09: 04 11 18 25
  08: 07 14 21 28
  07: 03 10 17 24
  06: 05 12 19 26
  05: 01 08 15 22 29
  04: 04 10 17 24
  03: 06 13 20 27
  02: 06 13 20 27
  01: 02 09 16 23 30
2010
  12: 05 12 19 26
  11: 07 14 21 28
  10: 03 10 17 24 31
  09: 05 12 19 26
  08: 01 08 15 22 29
  07: 04 11 16 25
  06: 06 13 20 27
  05: 02 09 16 23 30
  04: 04 11 18 25
  03: 07 14 21 28
  02: 07 14 21 28
  01: 03 10 17 24 31

Archive

Stingy News Quarterly
2014: Q1 Discontinued
2013: Q1 Q2 Q3 Q4
2012: Q1 Q2 Q3 Q4
2011: Q1 Q2 Q3 Q4
2010: Q1 Q2 Q3 Q4
2009: Q1 Q2 Q3 Q4
2008: Q1 Q2 Q3 Q4
2007: Q1 Q2 Q3 Q4
2006: Q1 Q2 Q3 Q4
2005: Q1 Q2 Q3 Q4
2004: Q1 Q2 Q3 Q4
2003: Q1 Q2 Q3 Q4
2002: Q1 Q2 Q3 Q4
2001: Q1 Q2 Q3 Q4

Dan's Reports
About Dan

Privacy Policy


 
About Us | 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, financial advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. More...