"I will tell you how to become rich. Close the doors. Be fearful
when others are greedy. Be greedy when others are fearful."  - Warren Buffett


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

Bear bonanza
http://www.forbes.com/free_forbes/2007/0917/042.html?partner=yahoomag
"Earlier this year Prem Watsa, the gunslinging chief of Fairfax Financial,
had $341 million riding on a hunch that dozens of brokers, banks and
insurers could struggle paying their debts. Watsa has a history of making a
killing on bearish bets. He sold half the company's stock holdings before the
1987 crash and bought puts against the S&P 500 before the index fell in
2000. But as summer began, his latest wager had produced nothing but
losses. Then the credit markets seized up, and investors began clamoring for the
Toronto insurer's collection of credit default swaps, basically insurance
against bond defaults. Prices climbed. By the end of July Fairfax's swaps
were worth $537 million, up 170% in a month."

Take-home lessons on value investing
http://news.morningstar.com/articlenet/article.aspx?id=204657
"If price volatility isn't a proper measure of risk, fluctuations can
afford an investor the opportunity to purchase a business for less than it's
worth, according to value investors like Pabrai. When the market smells
trouble and sends a stock's price down, value investors smell a potential
overreaction and get to work valuing the business."

Hiding in plain sight
http://www.reportonbusiness.com/servlet/story/RTGAM.20070829.rmthow0428/BNStory/specialROBmagazine/home?pageRequested=all
"Sisters Shirley Garwood and Helena Kells speak for many of Thow's former
clients when they express amazement that Thow continues to live in a luxury
condominium overlooking Puget Sound and is able to taunt them over the
phone. "Isn't anything going to happen?" asks Garwood. "Isn't anyone going
to do something about Ian Thow?""

A book-keeping error
http://www.economist.com/finance/displaystory.cfm?story_id=9724324
"New research suggests that the increasing reach of fair-value accounting
might be a mixed blessing. A paper by Guillaume Plantin of the London
Business School, Haresh Sapra of the University of Chicago and Hyun Song Shin
of Princeton University concludes that fair-value accounting could
sometimes generate fluctuations in asset values that distort the very price
information that it puts such store by."

Why disciplined value investing is so difficult
http://www.firsteaglefunds.com/firstEagle/fortune_world_according_to_eveillard_aug_07.pdf
"Ask yourself a simple question, Jean-Marie Eveillard says. "If Warren
Buffett is the second-richest man in the world, why aren't there more
professional value investors?"

In nature's casino
http://www.nytimes.com/2007/08/26/magazine/26neworleans-t.html?pagewanted=all
"From Miami to San Francisco, the nation's priciest real estate now faced
beaches and straddled fault lines; its most vibrant cities occupied its
most hazardous land. If, after World War II, you had set out to redistribute
wealth to maximize the sums that might be lost to nature, you couldn't
have done much better than Americans had done. And virtually no one - not
even the weather bookies - fully understood the true odds."

A psychology lesson from the markets
http://www.nytimes.com/2007/08/26/business/yourmoney/26view.htm
"Many people feel that they have discovered their true inner genius as
investors and have relished the new self-expression and excitement. Investors
across the world have been thinking that they are winners - not
recognizing that much of their success is only a result of a boom. Declines in asset
prices endanger this very self-esteem. That is why it is so hard to turn
around investor attitudes once a downward psychology sets in. The Fed and
other central banks do not have lithium or Prozac in their bag of
remedies, and so cannot control it."


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   5   4   3   5    5
Bank of Montreal (BMO)                          4   4   3   3   5    5
TransCanada (TRP)                               3   4   2   4   5    5
Royal Bank (RY)                                 4   2   3   2   5    5
CIBC (CM)                                       5   2   4   2   5    5
BCE (BCE)                                       4   3   3   4   5    5
Enbridge (ENB)                                  2   3   5   3   5    5
Bank of Nova Scotia (BNS)                       4   3   2   2   5    5
Transalta (TA)                                  0   4   3   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)                                   3   4   2   5   5   1.8
National Bank of Canada (NA)                    5   5   4   3   5   2.2
CIBC (CM)                                       5   2   4   2   5   3.0
Bank of Montreal (BMO)                          4   4   3   3   5   3.2
Royal Bank (RY)                                 4   2   3   2   5   3.5
Bank of Nova Scotia (BNS)                       4   3   2   2   5   3.8
Teck Cominco Limited (TCK.B)                    5   3   4   5   4   3.9
BCE (BCE)                                       4   3   3   4   5   4.2
Toronto Dominion Bank (TD)                      4   4   2   3   4   4.5
TransCanada (TRP)                               3   4   2   4   5   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   40.28  94.61
Lundin Mining Corporation (LUN)                 5   5   0   16.80  38.82
National Bank of Canada (NA)                    5   5   5   58.11   5.80
Magna Cl.A (MG.A)                               4   5   3   95.57   0.79
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 

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


Books for Stingy Investors

A Random Walk Down Wall Street
by Burton G. Malkiel

Take a random walk down Wall Street and you'll learn a great deal
about market history and current market theory. This book
provides an excellent introduction to the markets and gives readers a
good grounding in the efficient market hypothesis. Along the
way Malkiel makes a very strong case for indexing but even active
investors will find a great deal of useful information in his
book.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0393325350/


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

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.