"People like the robber barons assumed that the doctrine of the
survival of the fittest authenticated them as deserving power. You
know, "I'm the richest. Therefore, I'm the best. God's in his
heaven, etc." And that reaction of the robber barons was so
irritating to people that it made it unfashionable to think of an
economy as an ecosystem. But the truth is that it is a lot like an
ecosystem. And you get many of the same results."  - Charlie Munger


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

Mexicans and machines
http://reason.tv/video/show/451.html
"'No job is safe from the robot threat!' warns Carey. Of course,
the warning is more than a little tongue-in-cheek. There.s no
need to take a sledgehammer to a robot, because, although
technology shakes up the labor market, it ends up giving us higher
living standards as well as more and better job opportunities."
[Warning: Video contains scenes of violence and humour.]

Welcome to the nanny state nation
http://reason.tv/video/show/466.html
"Even if we don't particularly like something we should be wary
of banning it because every ban is backed up by the force of law.
Plus, would you want to live in a nation that bans everything
that offends someone?"

Stop worrying, and learn to love the bear
http://biz.yahoo.com/wallstreet/080712/sb121582067258747665_id.html?.v=1
"When you bought into the gospel of "stocks for the long run,"
did you have any idea how long the long run can turn out to be?
Exactly 10 years ago, the Standard & Poor's 500-stock Index was at
1164; it closed Friday at 1239. That's an annualized average
return of 0.63%. At that rate, it will take you 111 more years to
double your money in the stock market."

IndyMac seized by U.S. regulators
http://www.bloomberg.com/apps/news?pid=20601087&sid=aAYLeK3YAie4&refer=home
"IndyMac Bancorp Inc. became the second- biggest federally
insured financial company to be seized by U.S. regulators after a run
by depositors left the California mortgage lender short on
cash."

Mortgage giants face pressure
http://www.moneyweb.co.za/mw/view/mw/en/page94?oid=214654&sn=Detail
"One possible scenario if Fannie and Freddie's financial position
worsens: Under existing law, if either company were severely
low on capital, it could fall under the control of their
government regulator, which would then be responsible for the firm. That
step -- known as placing it in a conservatorship -- would allow
the mortgage company to continue operating, but the extent of
its abilities in such a distressed situation remains unclear."

The $5 trillion mess
http://money.cnn.com/2008/07/11/news/economy/fannie_freddie.fortune/index.htm?postversion=2008071110
"They own or guarantee $5 trillion worth of mortgages- nearly
half of all the country's outstanding home loan debt - and they're
crashing. Big time. If Fannie Mae and Freddie Mac go under, it
will wreak yet more havoc on an already wrecked housing market -
making loans tougher to come by and possibly pushing hundreds of
billions of dollars in cost on to U.S. taxpayers."

Why Buffett is buying
http://www.bloomberg.com/news/marketsmag/mm_0808_story1.html
"Buffett, 77, can afford to throw a little mud on his competitors
in the private equity industry. Wall Street's acquisition
machine has seized up, while Buffett, in the valedictory chapter of a
career stretching back more than 60 years, is on a buying
spree. He has $35.6 billion in cash to spend, and he's looking for
companies that he can buy at a reasonable price, that have
experienced managers he trusts, products with strong market positions
or other competitive advantages."

Warren Buffett gets busy
http://money.cnn.com/2008/07/10/markets/thebuzz/index.htm?postversion=2008071010
"But Buffett is putting things in perspective. Recession does not
equal the second Great Depression or economic Armageddon.
Rather, Buffett seems to be following the tried and true investing
axiom that the best time to make long-term bets is when fear is at
its peak. And make no mistake, this is a market ruled by fear
right now."

Spending safely
http://www.businessweek.com/magazine/content/08_28/b4092052940408.htm
"If you're getting ready to retire, you may already be familiar
with "the 4% solution." For more than a decade, financial
advisers have warned retirees that draining over 4% of their nest eggs
in their inaugural retirement year could ultimately lead to
financial ruin. The 4% mantra started with Bill Bengen, 60, a soft-
spoken investment adviser in El Cajon, Calif., who has written a
series of landmark research papers since 1994 on safe
withdrawal rates. What most people don't realize, though, is that Bengen
no longer recommends the 4% rate."

Your post-subprime portfolio
http://www.businessweek.com/magazine/content/08_28/b4092048922694.htm
"Saving for retirement has never been easy, but the past year has
made a complicated task all but overwhelming. The ongoing
collapse of the credit markets, sparked initially by problems in
subprime mortgages, has challenged some of investors' most cherished
and reliable investment beliefs and strategies. Auction-rate
securities sold as "cash equivalents" ended up sticking investors
with huge losses, supposedly low-risk bond funds blew up, and
for those who thought they'd pay for retirement by selling the
house.well, need we say more?"

Fannie Mae, Freddie losses make them 'insolvent'
http://www.bloomberg.com/apps/news?pid=20601087&sid=as4DEc5UFopA&refer=home
"While leading the St. Louis Fed, Poole roiled markets in 2003
when he said the government should consider severing its implied
backing of Fannie Mae and Freddie Mac and said the companies lack
the capital to weather financial market disruptions. In 2006
and 2007 he called for lawmakers to strip Fannie Mae and Freddie
Mac of their charters."

John Templeton dies at 95
http://www.bloomberg.com/apps/news?pid=20601082&sid=aB0lgrhLjFjU&refer=canada
"John Templeton, the billionaire U.S. philanthropist who made his
fortune as the pioneer of global investing in the postwar boom,
has died. He was 95."

How are we doing?
http://www.american.com/archive/2008/july-august-magazine-contents/how-are-we-doing
"When a presidential election year collides with iffy economic
times, the public's view of the U.S. economy turns gloomy.
Perspective shrinks in favor of short-term assessments that focus on
such unpleasant realities as falling job counts, sluggish GDP
growth, uncertain incomes, rising oil and food prices, subprime
mortgage woes, and wobbly financial markets. Taken together, it's
enough to shake our faith in American progress. The best path to
reviving that faith lies in gaining some perspective - getting
out of the short-term rut, casting off the blinders that focus us
on what will turn out to be mere footnotes in a longer-term
march of progress."


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)                               5   5   4   5   5    5
Bank of Montreal (BMO)                      4   5   5   1   5    5
CIBC (CM)                                   0   4   5   5   5    5
National Bank of Canada (NA)                3   4   4   5   5    5
Royal Bank (RY)                             4   3   4   5   5    5
Telus (T)                                   5   4   4   5   5    5
Bank of Nova Scotia (BNS)                   3   3   3   1   5    5
Toronto Dominion Bank (TD)                  4   4   3   2   5    5
TransCanada (TRP)                           3   4   3   4   5    5
Shaw Comm Cl.B (SJR.B)                      3   1   1   3   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
========================================== === === === === === =====
Biovail (BVF)                               5   5   4   5   5   0.6
Bank of Montreal (BMO)                      4   5   5   1   5   1.6
Thomson (TOC)                               5   4   2   2   4   1.9
Telus (T)                                   5   4   4   5   5   2.2
BCE (BCE)                                   5   3   3   4   4   2.3
Royal Bank (RY)                             4   3   4   5   5   2.4
Toronto Dominion Bank (TD)                  4   4   3   2   5   2.6
Bank of Nova Scotia (BNS)                   3   3   3   1   5   2.7
Sun Life (SLF)                              4   5   5   1   4   2.9
Husky Energy (HSE)                          4   2   3   3   4   3.0
More Info: http://www.stingyinvestor.com/SI/strategy/valueratio.shtml 

Graham Stocks                              P/E P/B P/D   G$   dG$(%)
========================================== === === === ====== ======
ACE Aviation (ACE.B)                        5   5   0   84.81 592.86
Magna Cl.A (MG.A)                           5   5   3   99.92  77.16
Thomson (TOC)                               5   4   4   55.77  48.79
Nova (NCX)                                  5   4   3   35.99  43.26
Biovail (BVF)                               5   5   5   14.14  39.04
Canadian Tire (CTC.A)                       4   5   3   67.16  26.79
Sun Life (SLF)                              4   5   4   49.87  22.14
Bank of Montreal (BMO)                      4   5   5   49.93  19.31
Weston George (WN)                          4   4   4   52.87  17.20
Inmet Mining (IMN)                          5   3   1   75.34  15.83
Petro Canada (PCA)                          5   4   2   60.46  15.71
Telus (T)                                   5   4   5   44.39  10.16
Canadian Pacific Rail (CP)                  4   4   2   68.68   7.38
MDS Inc. (MDS)                              2   5   0   15.98   6.28
Toronto Dominion Bank (TD)                  4   4   5   60.12   2.38
BCE (BCE)                                   5   3   4   40.06   2.07
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 

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

Switch to the HTML version if the tables aren't formatted properly.
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Books for Stingy Investors

Value Investing: A Balanced Approach
by Martin J. Whitman

Value Investing encourages investors to cast off the tyranny of
earnings and to focus instead on balance sheets and book values.
Well-capitalised firms can withstand an occasional headwind and
can be excellent values provided that they are bought for
reasonable prices. Safe and cheap are the driving factors for value
investors. Although Whitman's prose is occasionally a bit dry, his
useful ideas makes Value Investing well worth reading.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0471398101/


Stock Research From Dan Hallett & Associates

The Rothery Report
http://www.rotheryreport.com/ 

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 03/31/2008)
  Average Capital Gain    Average Holding Period
          40.9%                   2.4 Years

Learn More
http://www.rotheryreport.com/store/store.shtml

Subscribe Today
http://www.rotheryreport.com/store/order.shtml 



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ISSN 1499-2795 Copyright Dan Hallett and Associates Inc., 2008.
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.