"The stock market is a no-called-strike game. You don't have to
swing at everything--you can wait for your pitch. The problem when
you're a money manager is that your fans keep yelling, 'Swing,
you bum!'"  - Warren Buffett


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

'Toxic' mortgages are the best
http://www.businessweek.com/bwdaily/dnflash/content/sep2007/db20070921_855992.htm?chan=top+news_top+news+index_top+story
"Crazy? Not as crazy as you might think. The key, according to professors
Tomasz Piskorski of Columbia Business School and Alexei Tchistyi of New
York University's Stern School of Business, is that this kind of mortgage is
optimal only in a perfect world - namely, one in which borrowers are fully
rational and always do what's in their own best interest." [or why some
theorists should stay away from real markets]

New credit card scam
http://www.thestar.com/columnists/article/259472
"The caller asks you to look for seven numbers on the back of your card. He
reads you the first four, which are part of your card number, and asks
for the last three - the security numbers that verify you are the possessor
of the card. When you give the security numbers, he says, "That is
correct. I just needed to verify the card has not been lost or stolen and you
still have it." The scam is effective because you say very little. The caller
already has your credit card number, your address and the issuer's name
and gives you all the information - except for the one piece he wants."

When to pull trigger on a loss
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20070922/STCESTNICK22
"It makes most sense to sell to trigger a capital loss when at least one of
the following is true: (1) you don't want to own the investment any more,
or (2) you have capital gains in the current or a prior year that you'll
be able to apply the losses against. Otherwise, think twice before
selling."

Wage wars
http://www.businessweek.com/magazine/content/07_40/b4052001.htm?chan=top+news_top+news+index_top+story
"In overtime cases, Depression-era laws aimed at factories and textile
mills are being applied in a 21st century economy, raising fundamental
questions about the rules of the modern workplace. As the country has shifted
from manufacturing to services, for example, which employees deserve the
protections these laws offer? Generally, workers with jobs that require
independent judgment have not been entitled to overtime pay. But with businesses
embracing efficiency and quality-control initiatives, more and more
tasks, even in offices, are becoming standardized, tightly choreographed
routines. That's just one of several factors blurring the traditional
blue-collar/white-collar divide. Then there's technology: In an always-on,
telecommuting world, when does the workday begin and end? The ambiguity now
surrounding these questions is tripping up companies and enriching lawyers like
Thierman."

Too clever by 50 basis points
http://www.economist.com/finance/displaystory.cfm?story_id=9830765
"The past few weeks have shown that financiers did not fully understand
what they were trading. The boom in derivatives was one of those moments when
financial engineering raced ahead of back offices and risk-management
departments, leaving them struggling to value or account for their holdings.
Pierre Pourquery, of Boston Consulting Group, says it is not uncommon for
investors to break their exotic purchases into smaller pieces in order to
feed them into their risk-management systems. This brings new risks,
particularly that the parts will behave differently from the whole under
stress. Steven Schwarcz, a professor at Duke University and writer on
securitisation, has come across contracts which are so convoluted that it would be
impractical for investors to try to understand them: they would have to
spend more money hiring experts to deconstruct them than they could ever hope
to earn in extra returns."

Warren Buffett: "I don't care" if the Fed cuts rates
http://www.cnbc.com/id/20837495
"I represent a different view, maybe, than your other viewers. I don't
think it makes any difference whatsoever to an investor in stocks what they do
today. I don't care, I wouldn't care whether they raise the rate in terms
of what I would do in stocks. If I knew exactly what they were going to
do, I would not change a buy or a sell order that I have in." [Perhaps one
of the silliest Buffett interviews I've seen. Who did they think they were
interviewing?]

Was Harry Potter inevitable?
http://www.leggmason.com/funds/knowledge/mauboussin/HarryPotterInevitable.pdf
"The study's setup allowed for a very explicit test of social influence.
The independent group, unswayed by the opinion of others, provided a
reasonable indicator of song quality. If social influence is unimportant, you
would expect the song rankings - and downloads - to be similar in all nine
worlds. On the other hand, if social influence is important, small
differences in the initial download pattern in the social worlds would lead to very
different rankings. Cumulative advantage triumphs intrinsic quality. What
did the study show? Well, song quality did play a role. A top-five song
in the independent world had about a 50 percent chance of finishing in the
top five for a social influence world. And the worst songs rarely topped
the charts. Beyond that, the scientists found social influence played a
huge part in success and failure. In the eight social worlds, the songs
downloaded early in the experiment affected the songs downloaded later. Since
the patterns of download were different in each social world, so were the
outcomes. One song, "Lockdown" by 52metro, illustrates the point. The tune
was ranked 26 in quality in the independent world, effectively average.
Yet it was the number 1 song in one of the social influence worlds, and
number 40 in another. Social influence catapulted an average song to hit
status in one world and delegated it to the cellar in another."


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
Bank of Montreal (BMO)                          4   4   3   3   5    5
National Bank of Canada (NA)                    5   5   4   3   5    5
TransCanada (TRP)                               3   4   2   4   5    5
Royal Bank (RY)                                 4   3   3   2   5    5
BCE (BCE)                                       4   3   3   4   5    5
CIBC (CM)                                       5   2   4   2   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)                                   3   4   2   5   5   1.9
National Bank of Canada (NA)                    5   5   4   3   5   2.1
Bank of Montreal (BMO)                          4   4   3   3   5   3.0
CIBC (CM)                                       5   2   4   2   5   3.0
Royal Bank (RY)                                 4   3   3   2   5   3.4
Bank of Nova Scotia (BNS)                       4   3   2   2   5   3.7
BCE (BCE)                                       4   3   3   4   5   4.1
TransCanada (TRP)                               3   4   2   4   5   4.4
Teck Cominco Limited (TCK.B)                    5   3   4   4   4   4.4
Toronto Dominion Bank (TD)                      4   4   2   3   4   4.7
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   40.85  91.77
Lundin Mining Corporation (LUN)                 5   5   0   16.76  38.08
National Bank of Canada (NA)                    5   5   5   59.30   9.61
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.
http://www.stingyinvestor.com/cgi-bin/email.cgi 


Books for Stingy Investors

Contrarian Investment Strategies: The Next Generation
by David Dreman

David Dreman has provided perhaps the best modern book on value
investing and the markets. He goes from the basics through to
advanced topics and the sheer amount of useful information in his
book is remarkable. As an added bonus, Dreman's writing is clear
and approachable - a feat rarely seen in investing books. All
but the most grizzled market veteran will pick up a few good ideas
from Contrarian Investment Strategies: The Next Generation.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0684813505/


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 



If you'd like to suggest The Stingy News to a friend, please point them to:
http://www.stingyinvestor.com/cgi-bin/email.cgi

Please visit the StingyInvestor website at
http://www.stingyinvestor.com
To (un)subscribe please use our email centre at
http://www.stingyinvestor.com/cgi-bin/email.cgi
Email comments or questions to
info@stingyinvestor.com
Refer to legal & conflict of interest disclaimers at
http://www.stingyinvestor.com/SI/legal.shtml 

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.