"Only buy something that you'd be perfectly happy to hold if the
market shut down for 10 years."  - Warren Buffett


Stingy Links
http://www.stingyinvestor.com/SI/articles/articlearchive.shtml

Filing 101: Canada Revenue waits for no one
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20070428/STCESTNICK28
"In case you were thinking of allowing the deadline to come and go without
so much as lifting a finger, I've got a few things to keep in mind. Avoid
penalties for filing your return late. Filing your tax return by the April
30 deadline is important if you owe taxes. Failing to file on time will
mean a penalty of 5 per cent of the tax balance owing, plus 1 per cent for
each month your return is not filed, to a maximum of 12 per cent. And the
penalties could double if it's your second time failing to file on time in
the past three years."

Your brain on Gucci
http://www.reportonbusiness.com/servlet/story/RTGAM.20070425.wrob-gucci-0427/BNStory/specialROBmagazine/home
"Economists used to think consumers made rational purchasing decisions. But
a new field of research is revealing neural forces that leave classical
theorists scratching their heads"

Tip of the hat to Walter Schloss
http://www.berkshirehathaway.com/letters/2006ltr.pdf
Warren Buffett highlights Walter Schloss in his latest letter. Starting on
page 21, "Let me end this section by telling you about one of the good
guys of Wall Street, my long-time friend Walter Schloss, who last year turned
90. From 1956 to 2002, Walter managed a remarkably successful investment
partnership, from which he took not a dime unless his investors made
money. My admiration for Walter, it should be noted, is not based on hindsight.
A full fifty years ago, Walter was my sole recommendation to a St. Louis
family who wanted an honest and able investment manager. Walter did not go
to business school, or for that matter, college. His office contained one
file cabinet in 1956; the number mushroomed to four by 2002. Walter
worked without a secretary, clerk or bookkeeper, his only associate being his
son, Edwin, a graduate of the North Carolina School of the Arts. Walter and
Edwin never came within a mile of inside information. Indeed, they used
'outside' information only sparingly, generally selecting securities by
certain simple statistical methods Walter learned while working for Ben
Graham. When Walter and Edwin were asked in 1989 by Outstanding Investors
Digest, 'How would you summarize your approach?' Edwin replied, 'We try to buy
stocks cheap.' So much for Modern Portfolio Theory, technical analysis,
macroeconomic thoughts and complex algorithms." I bring this section of
Buffett's report to your attention because it is hard to find much written on
the publicity shy Walter Schloss.

A maestro of investments
http://www.nytimes.com/2007/04/23/business/23simpson.html?_r=3&pagewanted=1&ref=business&oref=slogin
"The bigger mystery is who will become the chief investment officer. Mr.
Buffett says he does not know himself. On this point of succession,
'frankly, we are not as well prepared,' he wrote in his 2006 shareholder letter
last month. Here is a clue, though. He or she will probably be a lot like
Louis Simpson. Louis who? Mr. Simpson, 70, has long overseen the investment
portfolio of Geico, the insurance company Berkshire owns, which is now
valued at more than $4 billion. He is also the only man other than Mr.
Buffett who has managed stock investments in Berkshire's portfolio. "

Down payment rule change won't alter much
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20070424/RCARRICK24
"Murphy's Law, adapted to the housing market of spring, 2007: What can
become more expensive, will become more expensive. House prices and mortgage
rates certainly conform these days, but there's one glaring exception.
Effective immediately, you can avoid the hefty cost of mortgage-default
insurance if you make a down payment of at least 20 per cent, down from the old
standard of 25 per cent."

ETFs for everyone. Even dermatology investors
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20070423/RSPRINGETFS23
"The ETF business today is a circus. Close to 100 new ones have been listed
for trading on North American exchanges so far this year, compared with
170 in all of last year and about 60 in 2005. It's quite a change from the
early days of ETFs a decade ago, when there was only an obscure handful of
these index funds that trade like a stock. ETFs began by tracking major
global stock indexes such as the S&P 500, the Nasdaq 100 and the S&P/TSX
composite (and its predecessor, the TSE 300 index). Today, with a choice of
funds for virtually all major indexes, ETF providers are turning to more
exotic products to build their franchises."

Meet the parents-backed mortgage
http://www.businessweek.com/magazine/content/07_17/b4031106.htm?chan=search
"The shared equity deals can be a prudent alternative to some of the more
creative financing techniques of recent years. Many young homeowners who
took on interest-only mortgages, piggyback loans, option adjustable-rate
mortgages, and other such gimmicky products are finding themselves
financially stretched as the cheaper teaser rates expire and higher market rates
kick in. In sharp contrast, equity-sharing deals offer the homeowner a
fiscally conservative package. Investors, usually parents, typically put in cash
to allow the buyers to amass a down payment of at least 20%. That allows
buyers to qualify for a conventional 30-year, fixed-rate mortgage. The
equity sharers get back their initial stake plus 10% to 50% of the profits."

The high price of free insurance
http://www.businessweek.com/magazine/content/07_17/b4031103.htm?chan=search
"Typically, those who sell policies receive about 20% to 30% of the death
benefit. For a $1 million policy belonging to someone with a life
expectancy of seven years, a purchaser might pay $250,000, says Adam Balinsky, a
partner at Baker & McKenzie in Toronto. But after paying various fees to
middlemen that buy policies, the seller would be likely to take home only
about $150,000, he calculates. From those proceeds, the seller would have to
repay the loan plus various lender fees and interest of 12% to 18%. In the
end, the insured might only net about $42,000, Balinsky figures."


S&P/TSX60 Value Screens
http://www.stingyinvestor.com/SI/strategy.shtml 

High Dividend Yield Stocks                     P/E P/B P/S P/C P/D Yield*
============================================== === === === === === ======
Biovail (BVF)                                   1   2   1   5   5    5
Bank of Montreal (BMO)                          4   4   3   3   5    5
Transalta (TA)                                  1   5   3   4   5    5
BCE (BCE)                                       3   4   4   5   5    5
National Bank of Canada (NA)                    5   5   4   3   5    5
TransCanada (TRP)                               3   4   3   4   5    5
Enbridge (ENB)                                  2   3   4   3   5    5
CIBC (CM)                                       5   3   4   2   5    5
Royal Bank (RY)                                 3   3   3   2   5    5
Bank of Nova Scotia (BNS)                       4   3   3   2   4    4
More Info: http://www.stingyinvestor.com/SI/strategy/dogs.shtml 

Value Ratio Stocks                             P/E P/B P/S P/C P/D  VR
============================================== === === === === === =====
Teck Cominco Limited (TCK.B)                    5   3   2   3   4   3.3
National Bank of Canada (NA)                    5   5   4   3   5   3.3
Bank of Montreal (BMO)                          4   4   3   3   5   3.4
CIBC (CM)                                       5   3   4   2   5   3.9
BCE (BCE)                                       3   4   4   5   5   4.5
Bank of Nova Scotia (BNS)                       4   3   3   2   4   4.6
Royal Bank (RY)                                 3   3   3   2   5   4.8
Toronto Dominion Bank (TD)                      3   4   3   3   4   5.0
TransCanada (TRP)                               3   4   3   4   5   5.2
Husky Energy (HSE)                              5   2   2   3   4   5.3
More Info: http://www.stingyinvestor.com/SI/strategy/valueratio.shtml 

Graham Stocks                                  P/E P/B P/D   G$   dG$(%)
============================================== === === === ====== ======
ACE Aviation Holdings Inc. (ACE.B)              5   4   0   34.76  15.88
Teck Cominco Limited (TCK.B)                    5   3   4   86.68   1.65
Magna Cl.A (MG.A)                               3   5   2   90.28   0.44
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 

*Notes: http://www.stingyinvestor.com/SI/strategy/notes.shtml 


Books for Stingy Investors

Contrarian Investor's 13
by Benj Gallander

Benj, a fellow Canadian MoneySaver contributing editor, publishes
the successful Contra The Heard investment newsletter with his
partner Ben. You can find out all about his investment
philosophy by reading his well-written book the Contrarian Investor's 13.
If you're a fan of beaten-down companies that many investors
have simply given up on then Benj's book will tickle your fancy.
Be sure to grab a copy soon because Canadian print runs tend to
be small and procrastinators might be out of luck.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0143015923/


Stock Research From Dan Hallett & Associates

The Rothery Report
http://www.stingyinvestor.com/SI/store.shtml 

The Rothery Report provides research on select deep-value stocks in
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Rothery Report Performance (03/31/2001 to 03/31/2007)
  Average Capital Gain    Average Holding Period
    Sold Stocks: 75.5%      Sold Stocks: 2.1 Years
    All Stocks: 51.5%       All Stocks: 2.3 Years

Special Bonus Reports: Top Smaller Stocks 2007
http://www.stingyinvestor.com/SI/store/TopSmallStocks.shtml

Learn More
http://www.stingyinvestor.com/SI/store.shtml

Subscribe Today
http://www.stingyinvestor.com/SI/store/order.shtml 



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ISSN 1499-2795 Copyright Dan Hallett and Associates Inc., 2007.
All rights reserved. The securities mentioned in this report are not
appropriate for all investors. Consult your professional investment
advisor before making any investment decision.  While all reasonable
effort is made to ensure the accuracy of information and data
contained herein, accuracy can not be guaranteed. Past performance is
not a good predictor of future performance.  Results are not
guaranteed and we assume no liability whatsoever for any material
losses that may occur.  No compensation for suggesting particular
securities or financial advisors is solicited or accepted.  The
information in this newsletter, and in its related website, is not
intended to be, nor does it constitute, financial advice or
recommendations.  Investing in stocks can be risky and may result in
substantial losses.  A Dan Hallett and Associates Inc.(DH&A)
publication.  DH&A is registered as Investment Counsel in the province
of Ontario. DH&A, or related-parties may have an interest in the
securities mentioned.