"I've seen more people fail because of liquor and leverage -
leverage being borrowed money. You really don't need leverage in this
world much. If you're smart, you're going to make a lot of
money without borrowing."  - Warren Buffett


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

A seasoned pro scoops up mortgage stocks
http://money.cnn.com/2007/11/09/magazines/fortune/eavis_zucaro.fortune/index.htm?postversion=2007110916
"As mortgage insurance stocks have gone into freefall over the past month,
speculation has been intense about whether a deep-pocketed investor would
step in and start buying, in the belief that the stock prices had fallen
too far. Old Republic International, a sleepy Chicago-based insurance
company led for the last 17 years by Aldo Zucaro, has made that bet."

Deductions failed the smell test
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20071110/STCESTNICK10
"What about your tax planning? Does it pass the smell test? There are some
court decisions where taxpayers have escaped the long arm of the Canada
Revenue Agency by getting away with deducting certain costs, or gaining some
other tax benefit, and I just conclude they got lucky. There are other
cases where the taxpayer has lost the battle, and it comes as a surprise to
no one. Here's a court decision that offers some valuable lessons in
claiming tax deductions."

Accounting for leverage
http://center.uvt.nl/sem/tuna.pdf
"The B/P ratio can be decomposed into an enterprise book-to-price (that
pertains to operations and potentially reflects operating risk) and a
leverage component (that reflects financing risk). The empirical analysis shows
that the enterprise book-to-price ratio is positively related to subsequent
stock returns but, conditional upon the enterprise book-toprice, the
leverage component of B/P is negatively associated with future stock returns."

Why you're not a rational investor
http://money.cnn.com/magazines/fortune/fortune_archive/2007/11/12/101008311/index.htm
"We like to think we make investment decisions based on facts. But we often
end up paying to express our beliefs, to acquire status, or to seem
smarter than our peers."

ABCP hits main street
http://www.canada.com/nationalpost/financialpost/story.html?id=a1401f97-5191-40ce-b618-1a509bac238d&k=88550
"The turmoil in asset-backed commercial paper knocked Bay Street on its ear
in August and now, three months later, it has re-emerged on Main Street
as pensioners and individual investors start to feel the pain. Because of
holdings of illiquid ABCP, the pension fund for employees of the University
of Western Ontario has restricted redemptions on some of its funds while
the pension fund for 35,000 current and former employees of co-ops and
credit unions may be forced to take similar steps."

Borrowers face dubious charges
http://www.nytimes.com/2007/11/06/business/06mortgage.html
"As record numbers of homeowners default on their mortgages, questionable
practices among lenders are coming to light in bankruptcy courts, leading
some legal specialists to contend that companies instigating foreclosures
may be taking advantage of imperiled borrowers. Because there is little
oversight of foreclosure practices and the fees that are charged, bankruptcy
specialists fear that some consumers may be losing their homes
unnecessarily or that mortgage servicers, who collect loan payments, are profiting
from foreclosures."


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   5   4   4   5    5
National Bank of Canada (NA)                    5   5   4   3   5    5
Royal Bank (RY)                                 4   3   3   2   5    5
BCE (BCE)                                       3   3   3   4   5    5
CIBC (CM)                                       5   2   4   2   5    5
Bank of Nova Scotia (BNS)                       4   3   2   2   5    5
Toronto Dominion Bank (TD)                      4   4   3   3   5    5
Telus (T)                                       3   4   2   4   5    5
TransCanada (TRP)                               3   4   2   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   5   4   4   5   2.4
CIBC (CM)                                       5   2   4   2   5   2.9
Thomson (TOC)                                   5   4   2   3   3   2.9
Royal Bank (RY)                                 4   3   3   2   5   3.0
Bank of Nova Scotia (BNS)                       4   3   2   2   5   3.4
Toronto Dominion Bank (TD)                      4   4   3   3   5   3.8
Teck Cominco Limited (TCK.B)                    5   3   4   4   4   3.8
BCE (BCE)                                       3   3   3   4   5   4.1
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   40.76 103.68
Lundin Mining Corporation (LUN)                 5   5   0   16.76  52.18
Thomson (TOC)                                   5   4   3   49.05  16.78
Magna Cl.A (MG.A)                               4   5   3   99.24  16.61
National Bank of Canada (NA)                    5   5   5   59.25  15.59
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

A Random Walk Down Wall Street
by Burton G. Malkiel

Take a random walk down Wall Street and you'll learn a great deal
about market history and current market theory. This book
provides an excellent introduction to the markets and gives readers a
good grounding in the efficient market hypothesis. Along the
way Malkiel makes a very strong case for indexing but even active
investors will find a great deal of useful information in his
book.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0393325350/


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.