"A pack of lemmings looks like a group of rugged individualists
compared with Wall Street when it gets a concept in its teeth."  - Warren Buffett


New @ StingyInvestor


The Income 100
http://www.ndir.com/SI/articles/MS0707.shtml
"A year ago we helped you target Canada's best income trusts in our second
All-Canadian Trust Guide. We ranked the largest trusts in Canada and
assigned each a letter grade depending upon how its financial numbers stacked
up. Despite the carnage in the trust sector as a result of new tax rules
introduced in late 2006, our picks hit the bulls-eye. Our top-flight trusts
- those rated either A or B - gained an average of 11.7% over the past
year. That continues a streak of strong performance. Since we started ranking
trusts in 2005, our top trusts have gained a total of 44.9%."


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

Crisis counsel
http://money.cnn.com/galleries/2007/fortune/0708/gallery.crisiscounsel.fortune/index.html
"In one way, I'm sympathetic to the institutional reluctance to face the
music. I'd give a lot to mark my weight to "model" rather than to "market.""

Hedge-fund guy atones for his subprime bond sins
http://www.bloomberg.com/apps/news?pid=20601039&sid=aO_Nh8kt4JgQ&refer=home
"Dear investor, we'd like to take this opportunity to update you on the
recent performance of our hedge fund, Short-Term Capital Mismanagement LLP.
As you know, market selection for the entire fund is guided by a
proprietary investing tool we like to call "a dartboard." Once the asset classes are
decided, individual security selections are generated by digitizing our
unique hexagonal cuboid models. Unfortunately, it transpires that our
hexagonal cuboids are not as unique as we thought. Hundreds of other hedge
funds possess identical dice. The technical term for this is a "crowded
trade." You may also see it referred to as "climbing on a bandwagon already
headed for the wall.""

Viscusi interview
http://www.richmondfed.org/publications/economic_research/region_focus/spring_2007/pdf/interview.pdf
"So, for instance, in the case of Superfund cleanups of hazardous wastes,
the people who benefit from the cleanups are not paying the costs directly
and thus demand the most stringent standards possible. The result is that
the median cost per cancer case averted is about $7 billion. It's off the
charts because you are using the responsible parties' money to clean up
the site. In contrast, if you look at the amount of money people are willing
to pay for houses that are not exposed to hazardous waste risks, you
don't observe that kind of large trade-off at all."

'Uptick' rule change an opportunity
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20070811/STBUYSIDE11
"The old SEC rule said that short selling could only be done at a price
higher than the last traded price. It was instituted to eliminate the "bear
raids" of the roaring 1920s, when well-financed stock operators would come
out with wave after wave of short selling at ever lower prices. This
spiralling price fall would give the raiders the chance to buy back their
shorted shares from panicked sellers, and go home richer at the expense of the
uninformed masses. The "sell on uptick" rule eliminated such bear raids,
with some exceptions. One was in commodities, where you can short at any
price, and another was for some brokers, in some cases. The last one is
important because it helped cause the 1987 crash, through "portfolio
insurance," which gave investors dyspepsia and a buying opportunity, same as it
might in the near future."

What most don't know about P/E ratios
http://www.iht.com/articles/2007/08/14/business/view.php
"Today, the Graham-Dodd approach produces a very different picture from the
one that Wall Street has been offering. Based on average profits over the
past 10 years, the P/E ratio has been hovering around 27 recently. That's
higher than it has been at any other point during the past 130 years,
except for the great bubbles of the 1920s and the 1990s. The stock run-up of
the 1990s was so big, in other words, that the market may still not have
fully worked it off."


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)                                   3   4   2   5   5    5
National Bank of Canada (NA)                    5   4   4   3   5    5
Bank of Montreal (BMO)                          4   4   3   3   5    5
TransCanada (TRP)                               3   4   2   4   5    5
BCE (BCE)                                       3   3   3   4   5    5
Bank of Nova Scotia (BNS)                       4   3   2   2   5    5
Enbridge (ENB)                                  2   3   5   3   5    5
Transalta (TA)                                  0   4   3   3   5    5
Royal Bank (RY)                                 4   2   3   2   5    5
CIBC (CM)                                       5   2   4   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
============================================== === === === === === =====
Biovail (BVF)                                   3   4   2   5   5   1.7
National Bank of Canada (NA)                    5   4   4   3   5   2.2
CIBC (CM)                                       5   2   4   2   4   3.1
Teck Cominco Limited (TCK.B)                    5   5   4   5   4   3.2
Bank of Montreal (BMO)                          4   4   3   3   5   3.3
Bank of Nova Scotia (BNS)                       4   3   2   2   5   3.5
BCE (BCE)                                       3   3   3   4   5   3.8
Royal Bank (RY)                                 4   2   3   2   5   3.8
TransCanada (TRP)                               3   4   2   4   5   4.4
Husky Energy (HSE)                              4   5   4   5   4   4.6
More Info: http://www.stingyinvestor.com/SI/strategy/valueratio.shtml 

Graham Stocks                                  P/E P/B P/D   G$   dG$(%)
============================================== === === === ====== ======
MDS Inc. (MDS)                                  5   5   0   40.24  98.93
Teck Cominco Limited (TCK.B)                    5   5   4   59.43  44.61
Lundin Mining Corporation (LUN)                 5   5   0   15.60  43.25
National Bank of Canada (NA)                    5   4   5   59.38   8.35
Magna Cl.A (MG.A)                               4   5   3   96.14   6.79
Husky Energy (HSE)                              4   5   4   39.51   4.97
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 

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


Books for Stingy Investors

Buffett: The Making of an American Capitalist
by Roger Lowenstein

The Making of an American Capitalist is the best biography of
Warren Buffett that I've read. By reading this book, you'll find
out how a young Buffett made money selling Coca-Cola to his
friends and how an older Buffett cashed in with Coke's stock. You'll
also discover why Warren started buying Berkshire Hathaway's
stock below $8 per share and how he boosted its value to lofty
heights (currently near $80,000 per share). The Making of an American
Capitalist is a must have for Buffett fans.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0385484917/


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 06/30/2007)
  Average Capital Gain    Average Holding Period
    Sold Stocks: 74.1%      Sold Stocks: 2.1 Years
    All Stocks: 53.6%       All Stocks: 2.4 Years

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

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., 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.