"In my whole life, I have known no wise people (over a broad
subject matter area) who didn't read all the time - none, zero. You'd
be amazed at how much Warren reads - at how much I read. My
children laugh at me. They think I'm a book with a couple of legs
sticking out."  - Charlie Munger


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

Housing: that sinking feeling
http://finance.yahoo.com/real-estate/article/103670/Housing:-That-Sinking-Feeling
"For the first time, big builders are offering massive, often six-figure,
price cuts in overbuilt developments nationwide, giving the industry a kind
of shock treatment designed to move inventory off the books fast. It
remains to be seen whether these radical measures will revive the market or
deepen the slump, but it's certainly having an impact on the local
communities."

Global warming delusions
http://online.wsj.com/article/SB119258265537661384.html
"Instead, like fashions that took hold in the past and are eloquently
analyzed in the classic 19th century book "Extraordinary Popular Delusions and
the Madness of Crowds," the popular imagination today appears to have been
captured by beliefs that have little scientific basis. Some colleagues
who share some of my doubts argue that the only way to get our society to
change is to frighten people with the possibility of a catastrophe, and that
therefore it is all right and even necessary for scientists to
exaggerate. They tell me that my belief in open and honest assessment is nave.
"Wolves deceive their prey, don't they?" one said to me recently. Therefore,
biologically, he said, we are justified in exaggerating to get society to
change."

Credit crunch taking a toll, Bank of Canada says
https://secure.globeadvisor.com/servlet/ArticleNews/story/RTGAM/20071018/wbocmonetary1018
"The global credit crunch is taking a toll on Canadian banks' balance
sheets, and has prompted lenders to curtail their credit, the Bank of Canada
says. 'Canadian financial institutions are facing substantially increased
funding needs,' the central bank said in its first full tally of the damage
done by the recent financial turmoil. Canadian banks have been forced to
hold high amounts of commercial paper of questionable value in their
inventories, the central bank pointed out. Plus, corporate borrowers are calling
on their banks to come through with funding arranged under pre-committed
lines of credit, now that some market sources of funding are not as
accessible. The Canadian banks are solvent enough to handle it, the central bank
said, but they are reacting by tightening up credit conditions."

Junk mortgages under the microscope
http://money.cnn.com/2007/10/15/markets/junk_mortgages.fortune/index.htm
"It's getting hard to wrap your brain around subprime mortgages, Wall
Street's fancy name for junk home loans. There's so much subprime stuff
floating around - more than $1.5 trillion of loans, maybe $200 billion of losses,
thousands of families facing foreclosure, umpteen politicians yapping -
that it's like the federal budget: It's just too big to be understandable.
So let's reduce this macro story to human scale. Meet GSAMP Trust 2006-S3,
a $494 million drop in the junk-mortgage bucket, part of the more than
half-a-trillion dollars of mortgage-backed securities issued last year. We
found this issue by asking mortgage mavens to pick the worst deal they knew
of that had been floated by a top-tier firm - and this one's pretty bad."

Views on the Canadian dollar
http://www.abcfunds.com/datav3/from_the_desk_of_irwin_michael/2007-10-17.shtml
"Over the past year the Canadian dollar has appreciated from $0.85 to
$1.02US or 20%. Admittedly, the Canadian dollar was undervalued at $0.70-$0.80
and at $0.85, in our opinion, it was fairly valued."

Dividend index hides some dogs
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20071017/RHEINZL17
"We like dividends, particularly companies that raise their dividends
regularly. For tax-efficient income and steady capital gains, it's hard to beat
a basket of stocks that bump up their payouts every year. So, naturally,
we were excited to hear that Standard & Poor's has launched a Canadian
version of its "Dividend Aristocrats" index, with an exchange-traded fund
expected to follow, possibly next year. Unfortunately, the more we learned
about the index, the more glaring were its shortcomings."


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
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
Toronto Dominion Bank (TD)                      4   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   1.9
Bank of Montreal (BMO)                          4   4   3   3   5   2.8
CIBC (CM)                                       5   2   4   2   5   2.9
Royal Bank (RY)                                 4   3   3   2   5   3.3
Bank of Nova Scotia (BNS)                       4   3   2   2   5   3.5
Toronto Dominion Bank (TD)                      4   4   3   3   4   4.1
Teck Cominco Limited (TCK.B)                    5   3   4   4   4   4.2
BCE (BCE)                                       3   3   3   4   5   4.2
TransCanada (TRP)                               3   4   2   4   5   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   40.86  96.80
Lundin Mining Corporation (LUN)                 5   5   0   16.79  34.01
National Bank of Canada (NA)                    5   5   5   59.33  15.33
Magna Cl.A (MG.A)                               4   5   3   95.71  10.48
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

Buffett: The Making of an American Capitalist
by Roger Lowenstein

The Making of an American Capitalist is the best biography of
Warren Buffett that I've read. By reading this book, you'll find
out how a young Buffett made money selling Coca-Cola to his
friends and how an older Buffett cashed in with Coke's stock. You'll
also discover why Warren started buying Berkshire Hathaway's
stock below $8 per share and how he boosted its value to lofty
heights (currently near $80,000 per share). The Making of an American
Capitalist is a must have for Buffett fans.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0385484917/


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 09/30/2007)
  Average Capital Gain    Average Holding Period
          53.4%                   2.5 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.