"Based on my own personal experience - both as an investor in
recent years and an expert witness in years past - rarely do more
than three or four variables really count. Everything else is
noise."  - Marty Whitman


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

How bad debt infected the world
http://www.smh.com.au/news/business/how-bad-debt-infected-the-world/2007/09/16/1189881341872.html
"Cathy Busby has never met Mick Mayor. The 47-year-old hospital
administrator from Colorado had no idea that when she fell behind with the mortgage
payments on her three-bedroom home in the suburbs of Denver, it would stop
Barclays extending the overdraft limit on Mayor's business four months
later. But this is the true story of the global credit crunch. What seemed
initially to be a problem in the US housing market is now forcing up the
cost of borrowing in Britain, having swept from Denver to Darlington."

TD Ameritrade suffers database breach
http://money.cnn.com/2007/09/14/news/companies/bc.brokerdatatheft.ap/index.htm?postversion=2007091411
"TD Ameritrade Holding Corp. said Friday one of its databases was hacked
and contact information for more than 6.3 million customers was stolen. A
spokeswoman for the Omaha-based brokerage firm said more sensitive
information in the same database, including Social Security numbers and account
data, does not appear to have been taken."

Crisis at Northern Rock
http://www.businessweek.com/globalbiz/content/sep2007/gb20070914_343931.htm?chan=top+news_top+news+index_businessweek+exclusives
"Northern Rock, a former Newcastle building society taken public in 1997,
thrived and then was brought down by its innovative business model. With a
relatively small deposit base, it used securitization of mortgages and
other capital-markets funding to grow rapidly to a nearly 19% share of the
British mortgage market by the first half of 2007. But a few weeks ago,
Northern Rock suddenly found that its various funding strategies were all
shutting down simultaneously. In a crisis of confidence, the business model
that had looked so good turned out to be no model at all."

The folly of forecasting
http://behaviouralinvesting.blogspot.com/2007/09/yet-more-evidence-on-folly-of.html
"One of the papers that didn't make it into the Behavioural Investing book
(but with hindsight perhaps should have been added in) was on the
performance of economists in forecasting recession. In it I pointed that
economists are simply hopeless when it comes to forecasting recessions (I could
have stopped that sentance before the word recessions). Their track record is
truly appalling. The chart below shows that in recent history (1980
onwards) the consensus of economists has not managed to forecast either of the
recessions that have occurred."

Scam alert
http://www.aarp.org/bulletin/consumer/scam_alert_misplaced_trust.html
"Pratkanis says these telemarketers gain victims' trust by calling often,
boosting their self-esteem and by bad-mouthing their children and other
watchdogs. He offers some tips for countering a relative's allegiance to
scammers and protecting against repeated rip-offs."


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)                                   4   4   2   5   5    5
Bank of Montreal (BMO)                          4   4   3   3   5    5
National Bank of Canada (NA)                    5   5   4   3   5    5
Royal Bank (RY)                                 4   3   3   2   5    5
TransCanada (TRP)                               3   4   2   4   5    5
CIBC (CM)                                       5   2   4   2   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   4   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)                                   4   4   2   5   5   1.7
National Bank of Canada (NA)                    5   5   4   3   5   2.1
CIBC (CM)                                       5   2   4   2   5   2.8
Bank of Montreal (BMO)                          4   4   3   3   5   2.9
Royal Bank (RY)                                 4   3   3   2   5   3.2
Bank of Nova Scotia (BNS)                       4   3   2   2   5   3.6
Teck Cominco Limited (TCK.B)                    5   3   4   5   4   3.7
BCE (BCE)                                       3   3   3   4   5   4.1
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   40.83  87.28
Lundin Mining Corporation (LUN)                 5   5   0   16.79  44.97
National Bank of Canada (NA)                    5   5   5   59.29  10.24
Magna Cl.A (MG.A)                               4   5   3   95.57   2.87
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 

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


Books for Stingy Investors

Security Analysis
by Benjamin Graham & David Dodd

Graham and Dodd's Security Analysis is the investment bible for
smart investors. Regrettably the breadth of material that it
covers can be intimidating and only dedicated students are likely to
make it through its 770 pages. However, Security Analysis is
filled with Graham's practical investment philosophy and if you're
a serious investor then you should read this book.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0071448209/


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.