Stingy Investor Contact - Subscribe - Login
  Home | Articles | Screens | Links | SNW | Rothery Report
 
The Stingy News Weekly (08/29/2010)


"It is hard to make predictions, especially about the future."
- Yogi Berra


Stingy Links

Graham PE and CPI
"Saturna Capital has an interesting take on the calculation of the Graham / Shiller PE10, otherwise known as the Cyclically Adjusted Price Earnings ratio (CAPE). Saturna argues that The Market May Be Cheaper Than It Looks because the Consumer Price Index (CPI) provided by the Bureau of Labor Statistics (BLS) understates the true rate of inflation, a key input to the CAPE calculation"


The elements of investing
"The Elements of Investing.written by former Vanguard board members Charles Ellis and Burton G. Malkiel.distills investing into five fundamental principles: save, index, diversify, avoid blunders, and keep it simple. Simply visit the publisher's website and download your copy today."


Lies, damned lies and economists
"It's established by now that economics didn't help stop some of the more spectacular misadventures of the financial community but it's a bit less obvious that it was directly responsible for many of the mishaps. It's all tied up with the dirty fact that economists are basically a bunch of untrustworthy, deceitful bums who shouldn't be left alone with your child's piggybank, let alone the world's economy. The trouble is that economists have a world-view that sees us all as self-interested moneygrubbers without an ethical thought in our heads. Perhaps that's because that's a pretty good description of economists themselves: they act like their models are true, the dirty rotten scoundrels."


The Fed can create money, not confidence
"The key word here is "uncertainty." The Obama administration and Congress have dumped a huge load of highly dubious new legislation on Americans, much of it unread even by the legislators who voted for it. ObamaCare is an attempted federal takeover of a vast and complex industry. No one really knows how much chaos the financial sector "reform" act will generate. Hyperactive zealots in federal bureaucracies such as the Environmental Protection Agency have been unleashed to do silly things like attempt to reduce the planet's supply of carbon dioxide."


The lost half decade
"While it has been a 'lost decade' for equities, housing isn't too far behind. The sector is now in the midst of a lost half decade and counting. Following up on yesterday's downright awful release of existing home sales, today's new home sales report for July came in at a seasonally adjusted annualized rate of just 276K, which is a record low dating back to 1963. Since peaking in July 2005, new home sales have now declined by more than 80% in five years."


How to tell when a CEO is lying
"Assessing whether reported financial statements are intentionally misstated (or manipulated) is of considerable interest to researchers, creditors, equity investors, and governmental regulators. While there is a lot of information out there on deception detection, there is not a lot of useful information. This recent study, where the authors analyze linguistic features present in answers of CEOs and CFOs during quarterly earnings conference calls, caught my eye. Investors might want to pay attention"


War between the sexes
"On average, 65-year old men today will receive only 43.6% of the net benefits that women receive, and young men today can expect a net tax burden over their lifetimes that will be 3.4 times greater than for women."


A man from a different time
"Looking at the U.S. market since 1871, on a 1-year time horizon, nearly 80% of the return has been generated by fluctuations in valuation. However, as the time horizon is extended, 'fundamentals' play an increasing role in return generation. For example, at a 5-year time horizon, dividend yield and dividend growth account for almost 80% of the return."


Darwin's darlings
"The premise of the report was that undervalued small capitalization stocks (those with a market capitalization between $50M and $250M) lacked a competitive auction for their shares and required the emergence of a catalyst in the form of a merger or buy-out to close the value gap."


Complex adaptive systems
"As long as the Chinese keep giving us money and inflation remains low, I see nothing forcing US policy to change. This is not sustainable, however, and when the US turns into a Greece-like situation, it will be a very bad decade. When you try to micromanage a complex system, the most important virtue is humility."


Strucs vs. Cycs
"So in the interest of peace between the camps - and of lowered unemployment - here's a plea to each. Strucs: You've got to be more specific about exactly how much of current unemployment you think is structural, and explain what those structures are, so that those who believe that government might be able to help fix it can at least offer some ideas. And Cycs: You can start by acknowledging what is different about unemployment in this recession and so-called recovery, and give us targeted policy proposals, instead of vague exhortations to pump up demand."


The rise of unemployment
"This disturbing graphic, by Latoya Eguwuekwe, charts the rise of unemployment across the U.S. from 2007 on."


Battle looms over public pensions
"There's a class war coming to the world of government pensions. The haves are retirees who were once state or municipal workers. Their seemingly guaranteed and ever-escalating monthly pension benefits are breaking budgets nationwide. The have-nots are taxpayers who don't have generous pensions. Their 401(k)s or individual retirement accounts have taken a real beating in recent years and are not guaranteed. And soon, many of those people will be paying higher taxes or getting fewer state services as their states put more money aside to cover those pension checks."


Huge government benefit
"Not participating in Social Security is a huge benefit. The implicit return on 'premiums' paid by you and your employer is typically below zero. In other words, if you took your social security taxes and stuffed them in a mattress, you would get a better return."


Britain reels as austerity begins
"Last month, the British government abolished the U.K. Film Council, the Health Protection Agency and dozens of other groups that regulate, advise and distribute money in the arts, health care, industry and other areas. It seemed shockingly abrupt, a mass execution without appeal. But it was just a tiny taste of what was to come."



DOW 30 Value Screens

High Dividend Yield StocksP/EP/BP/SP/DYield
Verizon (VZ)13555
AT&T (T)34355
Pfizer (PFE)25255
Merck (MRK)54155
EI DuPont (DD)32355
Kraft (KFT)44444
Chevron (CVX)54444
Johnson & Johnson (JNJ)32144
Intel (INTC)43244
Home Depot (HD)13544
Notes | More Info...


Value Ratio StocksP/EP/BP/SP/DVR
AT&T (T)34352.03
Merck (MRK)54152.03
Chevron (CVX)54442.28
Travelers (TRV)55432.58
Kraft (KFT)44442.80
EI DuPont (DD)32352.92
Johnson & Johnson (JNJ)32143.22
Intel (INTC)43243.23
Pfizer (PFE)25253.39
Exxon Mobil (XOM)43433.85
Notes | More Info...


Graham-Lite StocksP/EP/BP/DG$dG$(%)
Travelers (TRV)55392.1484.76
JP Morgan Chase (JPM)55156.6654.82
Chevron (CVX)54497.9330.70
Kraft (KFT)44434.6915.62
Merck (MRK)54540.1214.63
AT&T (T)34529.158.21
General Electric (GE)25415.283.85
Hewlett-Packard (HPQ)54138.330.88
Notes | More Info...


Top US StocksYieldV.R.Graham
AT&T (T)YYY
Chevron (CVX)YYY
Kraft (KFT)YYY
Merck (MRK)YYY
EI DuPont (DD)YY
Intel (INTC)YY
Johnson & Johnson (JNJ)YY
Pfizer (PFE)YY
Travelers (TRV)YY
Exxon Mobil (XOM)Y
General Electric (GE)Y
Hewlett-Packard (HPQ)Y
Home Depot (HD)Y
JP Morgan Chase (JPM)Y
Verizon (VZ)Y
Notes...



S&P/TSX60 Value Screens

High Dividend Yield StocksP/EP/BP/SP/DYield
Sun Life (SLF)25555
BCE (BCE)54455
Transalta (TA)24355
Husky Energy (HSE)34455
Bank of Montreal (BMO)43355
CIBC (CM)52355
Power Corp (POW)34555
Telus (T)43455
Manulife (MFC)05555
TransCanada (TRP)24155
Notes | More Info...


Value Ratio StocksP/EP/BP/SP/DVR
BCE (BCE)54452.24
CIBC (CM)52352.42
National Bank (NA)54342.55
Bank of Montreal (BMO)43352.80
Sun Life (SLF)25553.24
Telus (T)43453.25
Royal Bank (RY)42343.31
Husky Energy (HSE)34453.41
Power Corp (POW)34553.66
Bank of Nova Scotia (BNS)42343.80
Notes | More Info...


Graham-Lite StocksP/EP/BP/DG$dG$(%)
Teck Cominco (TCK.B)55247.1334.22
Inmet Mining (IMN)55167.3730.96
Brookfield A.M. (BAM.A)55333.4523.90
Canadian Tire (CTC.A)45267.9520.69
Sun Life (SLF)25529.2216.80
Encana (ECA)55434.1316.46
Nexen (NXY)45122.7714.81
National Bank (NA)54466.4010.66
BCE (BCE)54534.272.83
Power Corp (POW)34526.220.02
Notes | More Info...


Top Canadian StocksYieldV.R.Graham
BCE (BCE)YYY
Power Corp (POW)YYY
Sun Life (SLF)YYY
Bank of Montreal (BMO)YY
CIBC (CM)YY
Husky Energy (HSE)YY
National Bank (NA)YY
Telus (T)YY
Bank of Nova Scotia (BNS)Y
Brookfield A.M. (BAM.A)Y
Canadian Tire (CTC.A)Y
Encana (ECA)Y
Inmet Mining (IMN)Y
Manulife (MFC)Y
Nexen (NXY)Y
Royal Bank (RY)Y
Teck Cominco (TCK.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 06/30/2010)
Average Capital Gain
31.2%



Stingy News Weekly
The Latest Edition

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

2017
  11: 06 12 20
  10: 01 07 16 23 30
  09: 04 11 17 23
  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...