"Any man who is a bear on the future of this country will go
broke."  - J.P.Morgan


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

Bear Stearns' bad bet
http://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071011_175964.htm
"The revelations shed new light on the murky dealings inside the booming
$1.3 trillion hedge fund industry, which now accounts for up to a third of
all daily trading on Wall Street. They seem to underscore critics' biggest
complaint: that many hedge funds use astonishing amounts of leverage, or
borrowed money, in sometimes reckless ways. The risks of "fair value"
accounting, the practice that allows money managers to estimate the values of
securities for which they can't find true market prices, are thrown into
sharper focus as well. Coming soon, for better or worse: louder calls in
Washington for more oversight of the largely unregulated hedge fund
industry."

Buffett predicts a long flight for loonie
http://www.thestar.com/columnists/article/266412
"At an invitation-only Toronto dinner Thursday for about 140 prominent
investors, billionaire investor Warren Buffett said he expects the Canadian
dollar to continue rising beyond the parity it recently reached with the
U.S. dollar."

Interview with Warren Buffett
http://www.macleans.ca/business/economy/article.jsp?content=20071015_110163_110163&page=1
"Nebraska's Warren Buffett is known as the Oracle of Omaha for the savvy
stock market investments that have made him one the wealthiest people in the
world. Through his holding company Berkshire Hathaway, Buffett, 77, has
amassed a fortune investing in companies like Coca-Cola, famously shunning
trendy, riskier bets like Internet and technology companies. His success
has earned him a near cult-like following, evident each year at Berkshire's
hugely popular Omaha shareholders' meeting, which Buffett once called
Woodstock for Capitalists. But for all his riches, Buffett is equally
well-known for his frugal and folksy ways, and lately for his philanthropy. In
2006 he said he would give away 85 per cent of his roughly $50-billion
fortune, with the bulk going to the Bill & Melinda Gates Foundation in annual
instalments that Buffett insists be distributed in the year they are
received. His sister Doris is also involved in philanthopy and runs the Sunshine
Lady Foundation, which often deals with personal entreaties for aid that
Buffett receives."

The skinny on pension splitting
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20071013/STCESTNICK13
"Take the announcement last year about pension income splitting. Canadian
taxpayers have had many questions about how this is going to work. The
Canada Revenue Agency issued an announcement on July 18 that answered some of
the more common questions. Let me share some highlights."

The blow-up artist
http://www.newyorker.com/reporting/2007/10/15/071015fa_fact_cassidy
"On a wall opposite Victor Niederhoffer's desk is a large painting of the
Essex, a Nantucket whaling ship that sank in the South Pacific in 1820,
after being attacked by a giant sperm whale, and that later served as the
inspiration for 'Moby-Dick'. The Essex's captain, George Pollard, Jr.,
survived, and persuaded his financial backers to give him another ship, but he
sailed it for little more than a year before it foundered on a coral reef.
Pollard was ruined, and he ended his days as a night watchman. The
painting, which Niederhoffer, a sixty-three-year-old hedge-fund manager, acquired
after losing all his clients' money - and a good deal of his own - in the
Thai stock market crash of 1997, serves as an admonition against the
incaution to which he, a notorious risktaker, is prone, and as a reminder of
the precariousness of his success."

The sources of value
http://behaviouralinvesting.blogspot.com/2007/10/sources-of-value.html
"The results of this further decomposition are shown in the chart below
again for the period 1963-2006. The picture reveals show huge differences
between value and growth stocks. Value stocks see hardly any growth in book
value - not hugely surprising, they don't tend to invest large sums, in
general they are more interested in cost cutting than investment. However,
their is a very strong tendancy for convergence in price to book terms -
that is to say their valuation rebound - although the decomposition is silent
on whether this is the result of a bounce back in profitability or not.
The same can not be said of growth stocks. They see an enormous amount of
growth in book value - as they engage in large cap ex and M&A. However,
they convergence is negative, they witness declines in price to book as their
profitability erodes and valuations return to 'normal' levels."

1929 Redux: Heading for a crash?
http://www.alternet.org/workplace/64684/
"Your predecessors on the Senate Banking Committee, in the celebrated
Pecora Hearings of 1933 and 1934, laid the groundwork for the modern edifice of
financial regulation. I suspect that they would be appalled at the
parallels between the systemic risks of the 1920s and many of the modern
practices that have been permitted to seep back in to our financial markets.
Although the particulars are different, my reading of financial history
suggests that the abuses and risks are all too similar and enduring. When you
strip them down to their essence, they are variations on a few hardy
perennials - excessive leveraging, misrepresentation, insider conflicts of
interest, non-transparency, and the triumph of engineered euphoria over
evidence."


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
BCE (BCE)                                       3   3   3   4   5    5
Royal Bank (RY)                                 4   3   3   2   5    5
TransCanada (TRP)                               3   4   2   4   5    5
Bank of Nova Scotia (BNS)                       4   3   2   2   5    5
CIBC (CM)                                       5   2   4   2   5    5
Transalta (TA)                                  0   4   3   3   5    5
Enbridge (ENB)                                  2   3   5   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   1.9
National Bank of Canada (NA)                    5   5   4   3   5   2.2
Bank of Montreal (BMO)                          4   4   3   3   5   3.1
CIBC (CM)                                       5   2   4   2   5   3.3
Bank of Nova Scotia (BNS)                       4   3   2   2   5   3.7
Royal Bank (RY)                                 4   3   3   2   5   3.7
BCE (BCE)                                       3   3   3   4   5   4.2
Toronto Dominion Bank (TD)                      4   4   2   3   4   4.5
TransCanada (TRP)                               3   4   2   4   5   4.9
Teck Cominco Limited (TCK.B)                    5   2   3   4   3   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   40.79  92.88
Lundin Mining Corporation (LUN)                 5   5   0   16.75  21.03
National Bank of Canada (NA)                    5   5   5   59.27   7.51
Magna Cl.A (MG.A)                               4   5   3   95.82   3.37
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 

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

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Books for Stingy Investors

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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.