"The first principle is that you must not fool yourself - and you
are the easiest person to fool."  - Richard Feynman


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

Value's day once more
http://www.forbes.com/finance/forbes/2007/1224/112.html
"Is anyone happy? Well, value investors ought to be. To their way of
thinking bear markets are heaven-sent. Of all people, the disciples of Benjamin
Graham and David L. Dodd understand the investment appeal of everyday low
prices. They like it when stocks and bonds go on sale. They are the
Wal-Mart shoppers of Wall Street."

Bush's bad mortgage medicine
http://www.forbes.com/home/wallstreet/2007/12/06/bush-mortgage-subprime-biz-wall-cx_lm_1207subprime.html
"The Bush Administration's plan to rescue the housing market and keep the
economy from slipping into recession took flak yesterday for freezing
interest rate hikes for a mere fraction of subprime, adjustable-rate borrowers.
But there's a bigger risk: It could deepen and lengthen the credit
crisis."

Investor timing and fund distribution channels
http://www.zeroalphagroup.com/news/Investor_Timing_final_final_12-4-07.pdf
"We find that investors who transact through investment professionals using
conventional distribution arrangements experience substantially poorer
timing performance than investors who purchase pure no-load funds. Investors
in all three principal load-carrying retail share classes (A, B, and C)
significantly underperform a buy-and-hold strategy. Among all load funds,
Class B investors suffer from the poorest cash flow timing, underperforming
a buy-and-hold strategy by 2.28% annually, compared with annual
underperformance of 0.78% for investors in pure no-load funds. No-load index funds
are the only funds found to show no evidence of poor investor timing.
Although investors are ultimately responsible for their own investment
choices, these findings question the value being added by investment
professionals who sell mutual fund shares through conventional distribution
arrangements."

Chasing performance hurts load fund investors
http://network.nationalpost.com/np/blogs/wealthyboomer/archive/2007/12/06/chasing-performance-hurts-load-mutual-fund-investors-study-finds.aspx
"We find that investors who transact through investment professionals using
conventional distribution arrangements experience substantially poorer
timing performance than investors who purchase pure no-load funds. Investors
in all three principal load-carrying retail share classes (A, B, and C)
significantly underperform a buy-and-hold strategy. Among all load funds,
Class B investors suffer from the poorest cash flow timing, underperforming
a buy-and-hold strategy by 2.28 percentage points annually, compared with
annual underperformance of 0.78 percentage points for investors in pure
no-load funds. No-load index funds are the only funds found to show no
evidence of poor investor timing."

High-yield stocks for retirement
http://money.cnn.com/2007/12/05/pf/high_yield_stocks.moneymag/index.htm?postversion=2007120610
"Ned Davis Research recently crunched the numbers for Money and found that
a high-yielding portfolio launched at the worst time in the past 40 years
- before the 1973-74 bear market - not only would have kept your income
growing at the pace of inflation but would have increased in value eightfold
(assuming an initial withdrawal rate of 4.5 percent). An S&P 500
portfolio, on the other hand, would have been used up by now. Over time,
high-paying stocks also generate more income than government bonds. That's because
while bond income is fixed, dividends aren't."

The prince of value
http://money.cnn.com/2007/12/04/pf/browne.moneymag/?postversion=2007120516
"If there's such a thing as an aristocracy of American investing,
Christopher Browne is a full member. He's one of five managing directors of Tweedy
Browne, a firm co-founded by his father, who brokered stock trades for
Benjamin Graham, the creator of modern securities analysis. Later, when
Graham's most illustrious pupil, Warren Buffett, wanted to take a controlling
interest in a then sleepy textile company called Berkshire Hathaway, Tweedy
Browne bought the stock. Given this lineage, it's hardly a surprise that
Browne would become a spokesman for Graham's and Buffett's investing
philosophy."

Ever more fleeting?
http://www.bankstocks.com/article.asp?type=&id=9881571
"There are still way too many analysts who expect too many companies to
generate annual long-term earnings growth of 20% to 25% or more. Analysts pay
too little attention to how easily such a rapid rate of growth can fade
after just a few years. Research departments aren.t shy about putting out
lists of companies they expect to generate annual earnings increases of 15%
or more for at least five years. One value of Leuthold.s work is the
reminder it provides that such high sustained earnings growth is truly rare."


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)                                   5   5   2   5   5    5
Bank of Montreal (BMO)                          3   4   3   3   5    5
National Bank of Canada (NA)                    3   4   4   3   5    5
CIBC (CM)                                       5   3   4   3   5    5
Telus (T)                                       4   4   3   4   5    5
Royal Bank (RY)                                 4   3   3   2   5    5
BCE (BCE)                                       3   3   3   4   5    5
Bank of Nova Scotia (BNS)                       4   3   2   2   5    5
TransCanada (TRP)                               2   4   2   4   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)                                   5   5   2   5   5   0.7
CIBC (CM)                                       5   3   4   3   5   2.0
Thomson (TOC)                                   5   4   2   3   4   2.2
Teck Cominco Limited (TCK.B)                    5   4   4   4   4   2.9
Bank of Montreal (BMO)                          3   4   3   3   5   3.0
Royal Bank (RY)                                 4   3   3   2   5   3.2
National Bank of Canada (NA)                    3   4   4   3   5   3.5
Bank of Nova Scotia (BNS)                       4   3   2   2   5   3.6
Telus (T)                                       4   4   3   4   5   3.6
BCE (BCE)                                       3   3   3   4   5   3.8
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   40.77 104.58
Lundin Mining Corporation (LUN)                 5   5   0   16.96  70.63
Thomson (TOC)                                   5   4   4   48.98  28.70
Biovail (BVF)                                   5   5   5   18.96  25.57
Magna Cl.A (MG.A)                               4   5   3   99.23  21.28
Teck Cominco Limited (TCK.B)                    5   4   4   41.91   7.33
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

Contrarian Investment Strategies: The Next Generation
by David Dreman

David Dreman has provided perhaps the best modern book on value
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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

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http://www.rotheryreport.com/ 

The Rothery Report provides research on select deep-value stocks in
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  Average Capital Gain    Average Holding Period
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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.