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2002: Q1 Q2 Q3 Q4
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2009
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2008
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Dan's Reports
  Perspective on the bear
  Dilution excessive
  Fund fees revisited
  T class funds
  Bonds vs. bond funds
  Bear market protectors
  Investing in bonds
  Ignore bonds at your peril
  Coping with change
  Future of trust funds
  Dilution trumps
  Are fees excessive?
  Performance anxiety
  Top advisory model?
  81-106 a step back
  Poor fund classifications
  Pension shortfall
  A longer-term report card
  Information overload
About Dan

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The Stingy News Weekly (03/01/02)

The Markets This Week

DOW 30: 10,368.9 +4.02% to a P/E of 29.0
TSE 300: 7,710.8 +3.83% with a negative P/E

The Value View

Dow at a P/E of 20: 7,151 (-31.0%) Poor Value
Dow at a P/E of 15: 5,363 (-48.3%) Fair Value
Dow at a P/E of 10: 3,575 (-65.5%) Good Value

Answers to the Stingy Contest

Q1. What is the MER of the XIU ETF?
A1. 0.17%
Q2. What is the MER of the XIN ETF?
A2. 0.35%
Q3. What is the MER of the XGV ETF?
A3. 0.25%
Q4. How many stocks does the XIU ETF hold?
A4. 60
Q5. How many stocks does the XFN ETF hold?
A5. 25

A total of 21 people answered all five questions correctly and the winner was selected via a random draw. I've already emailed the lucky winner. Thank you for playing!

Stingy Links

Study links profit to dividends
"Throughout the booming 1990s, dividends fell out of favour as investors turned their focus to rising stock prices and juicy capital gains. Corporate North America convinced investors that profits were best spent expanding businesses rather than paying out fat dividends, leading to stronger growth in years ahead. But new financial research argues the opposite is true; that low dividend payouts lead directly to poor profit growth."

Prescription for disaster
"In this post-Enron world, investors understandably want to know if Elan is an isolated case, or if the pharmaceutical industry is potentially as riddled with accounting problems as, say, the energy-trading business."

The $200 billion miscarriage of justice
"Asbestos lawyers are pitting plaintiffs who aren't sick against companies that never made the stuff--and extracting billions for themselves."

Smoking gun
"Nearly two years after the popping of the Great American Asset Bubble, the US economy is still sputtering. Whatever the outcome -- double dip or anemic recovery -- it's far cry from the froth of the Roaring 1990s."

Media should bring back our beloved bubble
"Do these things, and we're on our way. But don't be discouraged if it doesn't happen all at once. Remember, the Internet Bubble wasn't built in a day. It took, like, a week."

How telecom's bad boy did it
"The emerging scandal at Global Crossing has many of the same ingredients as Enron's: a colossal bankruptcy, a politically connected chairman who walked away with millions, dubious accounting, and inadequate disclosure. There's even a whistle blower's prophetic warning and a familiar accounting firm, Arthur Andersen. The SEC and the FBI are looking into whether Global Crossing used improper accounting to inflate its revenues. And investors are racing to learn whether other telecoms did the same."

Market Trivia

The trivia questions this week are:
Q1. What is the median P/E ratio of the S&P 500?
Q2. What is the median P/Book Value ratio of the S&P 500?
Q3. What is the median P/Sales ratio of the S&P 500?


The answers for last week's trivia questions are:
Q1. Who said "If a man will begin with certainties, he shall end in doubts, but if he will be content to begin with doubts, he shall end in certainties."?
A1. Francis Bacon
Q2. Who said "I was suffering from my chronic delusion that one good share is safer than ten bad ones, and I am always forgetting that hardly anyone else shares this particular delusion."?
A2. John Maynard Keynes
Q3. Who said "First, many in Wall Street - a community in which quality control is not prized - will sell investors anything they will buy."?
A3. Warren Buffett

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Bullishly Yours,
Norman Rothery
ISSN 1499-2795

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