"Unless you can watch your stock holdings decline by 50% without
becoming panic-stricken, you should not be in the stock market."  - Warren Buffett


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

Buffett's billions came from one book
http://www.sunherald.com/business/story/153703.html
"Who was David LeFevre Dodd? He was an economist, financial analyst and
finance professor for four decades at Columbia University, where he co-wrote
a classic book, "Security Analysis," with colleague Benjamin Graham that
laid out the case for value investing, a strategy that Warren Buffett later
adopted and made billions from."

Can we turn off our emotions when investing?
http://www.nytimes.com/2007/09/29/business/29nocera.html?ex=1348718400&en=77986b6930cb1466&ei=5090&partner=rssuserland&emc=rss
"How about understanding what our real tolerance for risk is? Mr. Zweig
makes the usually overlooked point that our risk tolerance is not a fixed
thing, but changes from day to day, even hour to hour, depending on our mood.
Indeed, research has shown that the way we think about risk often depends
on how others have framed the question for us. Amazingly, for instance,
people tend to be more sanguine about risk when it is expressed as a
percentage (10 percent, say) than when it is expressed as a frequency (one out
of 10)."

The lone raider
http://www.reportonbusiness.com/servlet/story/RTGAM.20070925.rmarmy0925/BNStory/specialROBmagazine/home
"Over the past three years, the 47-year-old Armoyan has been on a tear,
seizing control of a dozen mostly beaten-up but asset-rich companies,
including Versacold Income Fund, a refrigerated warehousing/trucking outfit;
Royal Host Real Estate Investment Trust [RYL.UN-T], a hotel owner and
franchisor; and General Donlee Income Fund [GDI.UN-T], which makes aircraft
components. Armoyan's modus operandi is the same in almost every case: He
quietly starts accumulating shares through his principal public investment
vehicle, Clarke Inc. [CKI-T] Then, when he crosses the 10% threshold that
requires him to publicly disclose his holding, he demands seats on the target's
board of directors and input into management. The goal is to gain control
and then engineer a turnaround, or sell off the company for a profit as
soon as opportunity knocks."

Why hard work doesn't pay
http://articles.moneycentral.msn.com/SavingandDebt/LearnToBudget/WhyJoeSixPackCantGetAhead.aspx
"If you look at the averages, the statistics give a simple message: Hard
work does not equate to economic progress. It hasn't for decades. We may
need hard work to keep body and soul together -- not to mention pay the Visa
bill -- but average-worker paychecks clearly show that inflation continues
to trump wage gains for most American workers."

Performance persistence of individual investors
http://www.schulich.yorku.ca/SSB-Extra/NorthernFinance.nsf/Lookup/Oyvind%20Norli26/$file/Oyvind%20Norli26.pdf
"We find that a substantial number of investors exhibit economically and
statistically significant performance persistence. This is robust to how we
measure past performance, how often investors trade and whether investors
are small or large. Unlike the evidence from mutual and pension funds, the
persistence in performance we uncover is not concentrated in investors
with poor prior performance. We also show that forming a portfolio that is
long in stocks previously favored by top performing investors earns a
substantial risk adjusted return in the future."

$1.4B tax scams nail donors
http://www.thestar.com/Investigation/article/261820
"Canada's coffers have been cheated of more than $1.4 billion by scams that
provided taxpayers with inflated charitable receipts they used to reduce
their income tax. From coast to coast, donors wrote cheques to charities
and tax scheme promoters that boasted they were saving the deathly ill, the
poor and disabled, overseas and in Canada. Now, at least 106,000
individual Canadians are learning the Canada Revenue Agency considers these
schemes a sham, and wants to claw the money back. Some also are being hit with
major financial penalties."

Unsafe havens
http://www.bloomberg.com/news/marketsmag/mm_1007_story2.html
"Money market funds were invented 37 years ago to offer investors better
returns than bank savings accounts while providing a high degree of safety.
Most of the $2.5 trillion sitting in these funds is invested in such
assets as U.S. Treasury bills, certificates of deposit and short-term
commercial debt. Unlike bank accounts, money market funds aren't insured by the
federal government. They almost never fail. Unbeknownst to most investors,
some of the largest money market funds today are putting part of their cash
into one of the riskiest debt investments in the world: collateralized
debt obligations backed by subprime mortgage loans."

Dreman interview
http://www.wealthtrack.com/transcript_09-14-2007.php
"I guess the key word is yet. I think we'll have some really major
opportunities in the stock market. But I think there will be -- we'd like to see a
little more unwinding. Actually, the stock market is fundamentally very
strong."

Absence of fear
http://www.fpafunds.com/news_070703_absense_of_fear.asp
"There have been several studies as to how inflated housing prices had
become prior to the present correction. According to the work done by Gary
Shilling.s firm, home prices would have to correct between 22% and 28% to
return to the equivalent of the median asking rent or to the trend line of
the CPI. Prior to 1996, both of these measures approximated the rate of
increase in home prices. According to Robert Shiller of Yale University, his
real quality-adjusted existing house price index would have to correct
nearly 45% to bring it back into alignment. My initial reaction to this
estimate was one of disbelief and that it appears excessive; however, home
prices would appear to have a considerable way to fall, given the high level of
total homes available for sale. With nearly 4.5 million homes for sale in
2007, this compares to an average of approximately 2.5 million homes
since 1990 or an excess of approximately 2 million homes. Since 1965, the
median dollar volume of single-family homes sales as a percentage of nominal
GDP has averaged 8.4% versus 16.3% at the 2005 peak, according to Northern
Trust Global Economic Research."


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
BCE (BCE)                                       4   3   3   4   5    5
Royal Bank (RY)                                 4   2   3   2   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   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   2.1
CIBC (CM)                                       5   2   4   2   5   3.1
Bank of Montreal (BMO)                          4   4   3   3   5   3.2
Royal Bank (RY)                                 4   2   3   2   5   3.6
Bank of Nova Scotia (BNS)                       4   3   2   2   5   3.8
BCE (BCE)                                       4   3   3   4   5   4.1
Teck Cominco Limited (TCK.B)                    5   3   4   4   4   4.3
TransCanada (TRP)                               3   4   2   4   5   4.5
Toronto Dominion Bank (TD)                      4   4   2   2   4   5.0
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   40.81  89.89
Lundin Mining Corporation (LUN)                 5   5   0   16.79  32.11
National Bank of Canada (NA)                    5   5   5   59.22   8.66
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.
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Books for Stingy Investors

The Aggressive Conservative Investor
by Martin Whitman & Martin Shubik

Originally published in 1979, this value classic is once again in
bookstores with a new introduction but most of the tome remains
unchanged. Aside from providing a glimpse into investing in the
late 1970s, much of Whitman's basic moneymaking approach, which
focuses on balance sheet values, continues to apply today. A
great book for more seasoned investors but it might be a little
heavy for some.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0471768057/


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.