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Tip Sheet Tip Sheet Archive Overview High Dividend Yield   High Yield DJIA30   High Yield TSX60 Dividends at Risk   Dividend Risk DJIA30   Dividend Risk TSX60 Value Ratio Approach   Value Ratio DJIA30   Value Ratio TSX60 Graham's Approach   Graham DJIA30   Graham TSX60 Other Screens   Low P/E DJIA   Low P/E TSX60   Low P/B DJIA   Low P/B TSX60   Low P/S DJIA	Stingy Investor Tip Sheet Graham Net Net May Update I've refreshed the list of Canadian and U.S. Net Net stocks. These are stocks trading at a discount to current assets less all liabilities. Ben Graham originally suggested stocks trading at 66% of their Net Net value. I was more generous and started my search at 100% or less of Net Net. You'll remember that a stock's Net Net is equal to its current assets less all liabilities. It should come as no surprise that there are relatively few Net Net candidates and they tend to be very small stocks indeed. Data on these very small stocks tends to be uneven at best. Indeed, looking for Net Nets can be a good way to uncover database errors or bankrupt companies. Nonetheless, you can occasionally spot a gem or two. But, before diving in, make sure you go the extra mile to check the data and beware that many of these stocks are extraordinarily illiquid. In such cases, market orders can lead to poverty. Buying stocks indiscriminately from a Net Net list can be dangerous. If it's dangerous, why bother? Because the returns have been quite good as Montier showed in his article "Graham's net-nets: outdated or outstanding?" which can be found in his book "Value Investing". (Hint: The answer is outstanding.) You just have to sort through the dross. The two tables below present raw data. To help discriminate between the bankrupt companies and those that are not quite dead yet, I've sorted them by Market Capitalization from high to low. It's not perfect but broken companies usually appear lower down on the list. Also, for NASDAQ stocks, a trailing Q in a 5 letter ticker symbol is a bad sign. Here are the lists of Canadian and U.S. stocks that pass the Net Net test ... If you're a current subscriber, login to see the tables. If not, subscribe today! 5/12/2012   2:30 PM EST   Permlink   save & share Value Investing Stingy Stock May Update Our Stingy Stock method is very popular and, we're pleased to say, that it has also been highly profitable. Table 1: Past Performance Period Stingy Stocks S&P500 (SPY) +/- 2001 - 2002 -1.9% -22.1% 20.2 2002 - 2003 33.8% 23.0% 10.8 2003 - 2004 29.8% 13.4% 16.4 2004 - 2005 29.2% 8.2% 21.0 2005 - 2006 28.9% 12.6% 16.3 2006 - 2007 -5.5% 7.4% -12.9 2007 - 2008 -40.1% -37.5% -2.6 2008 - 2009 64.5% 26.0% 38.5 2009 - 2010 69.4% 12.4% 57.0 2010 - 2011 -16.1% -0.3% -15.7 Total Gain Since Inception 275.5% 25.4% 250.0 After the huge run, it won't surprise you that we've had several requests for updates from keen investors. But before revealing the current list of Stingy Stocks, let's take a quick look at some of the criteria we used to find them. Stingy Stock Criteria 1. A member of the S&P500 2. Debt-to-Equity Ratio less than or equal to 0.5 3. Current Ratio of more than 2 4. Interest Coverage of more than 2 5. Some Cash Flow from Operations 6. Some Earnings 7. Price to Sales ratio of less than 1 You can learn even more about the approach by perusing this year's article. The rest of this update has been reserved for Rothery Report subscribers. If you're a current subscriber, just login. If not, subscribe today! 5/12/2012   1:55 PM EST   Permlink   save & share Value Investing Stingy Stock March Update Our Stingy Stock method is very popular and, we're pleased to say, that it has also been highly profitable. Table 1: Past Performance Period Stingy Stocks S&P500 (SPY) +/- 2001 - 2002 -1.9% -22.1% 20.2 2002 - 2003 33.8% 23.0% 10.8 2003 - 2004 29.8% 13.4% 16.4 2004 - 2005 29.2% 8.2% 21.0 2005 - 2006 28.9% 12.6% 16.3 2006 - 2007 -5.5% 7.4% -12.9 2007 - 2008 -40.1% -37.5% -2.6 2008 - 2009 64.5% 26.0% 38.5 2009 - 2010 69.4% 12.4% 57.0 2010 - 2011 -16.1% -0.3% -15.7 Total Gain Since Inception 275.5% 25.4% 250.0 After the huge run, it won't surprise you that we've had several requests for updates from keen investors. But before revealing the current list of Stingy Stocks, let's take a quick look at some of the criteria we used to find them. Stingy Stock Criteria 1. A member of the S&P500 2. Debt-to-Equity Ratio less than or equal to 0.5 3. Current Ratio of more than 2 4. Interest Coverage of more than 2 5. Some Cash Flow from Operations 6. Some Earnings 7. Price to Sales ratio of less than 1 You can learn even more about the approach by perusing this year's article. The rest of this update has been reserved for Rothery Report subscribers. If you're a current subscriber, just login. If not, subscribe today! 3/23/2012   1:40 PM EST   Permlink   save & share Value Investing Graham Net Net March Update I've refreshed the list of Canadian and U.S. Net Net stocks. These are stocks trading at a discount to current assets less all liabilities. Ben Graham originally suggested stocks trading at 66% of their Net Net value. I was more generous and started my search at 100% or less of Net Net. You'll remember that a stock's Net Net is equal to its current assets less all liabilities. It should come as no surprise that there are relatively few Net Net candidates and they tend to be very small stocks indeed. Data on these very small stocks tends to be uneven at best. Indeed, looking for Net Nets can be a good way to uncover database errors or bankrupt companies. Nonetheless, you can occasionally spot a gem or two. But, before diving in, make sure you go the extra mile to check the data and beware that many of these stocks are extraordinarily illiquid. In such cases, market orders can lead to poverty. Buying stocks indiscriminately from a Net Net list can be dangerous. If it's dangerous, why bother? Because the returns have been quite good as Montier showed in his article "Graham's net-nets: outdated or outstanding?" which can be found in his book "Value Investing". (Hint: The answer is outstanding.) You just have to sort through the dross. The two tables below present raw data. To help discriminate between the bankrupt companies and those that are not quite dead yet, I've sorted them by Market Capitalization from high to low. It's not perfect but broken companies usually appear lower down on the list. Also, for NASDAQ stocks, a trailing Q in a 5 letter ticker symbol is a bad sign. Here are the lists of Canadian and U.S. stocks that pass the Net Net test ... If you're a current subscriber, login to see the tables. If not, subscribe today! 3/24/2012   12:50 PM EST   Permlink   save & share Value Investing Canadian Dual Class Shares I talked a bit about the strange trading that can occur in dual class shares in a Globe & Mail article called The fine art of cashing in on class differences You can read the paper mentioned in the article via: Mispricing of Dual-Class Shares: Profit Opportunities, Arbitrage, and Trading Below is a table of Canadian stocks with dual class shares along with recent closing, bid, and ask prices. (Be sure to keep an eye out for significant economic rights differences between share classes.) If you're a current subscriber, login to get the table. If not, subscribe today! 3/24/2012   11:30 PM EST   Permlink   save & share Markets Low PB Heat Maps I've been investigating the return history of stocks with low price to book value ratios and you can read about some of my musings in two articles that were recently published in the Globe and Mail: + A time-honoured investing theory collides with new facts + When diving for value goes too far After reading those articles, you might think that the case for low-P/B investing is grim. I don't think it is. But it isn't perfect. During these investigations I created four heat maps that you might find interesting. These are big grids with each cell showing the annual return generated between a starting year and an ending year. The cells are coloured to highlight particularly good - or bad - periods. One map shows the returns of stocks in the lowest P/B decile (10) and a second those of stocks in the second lowest decile (9). The next two maps show the decile returns minus the returns of the largest 30% of stocks. The largest 30% of stocks roughly follow the market's returns and should be reasonably similar to the returns of the S&P500. These are basically outperformance / underperformance maps. In all cases the returns are based on data from professor Kenneth French and are based on value weighted indexes where large stocks matter more than small stocks. This, hopefully, largely removes the influence of microcap stocks on the figures. Consider the maps as raw research materials rather than a polished publication. But they should be of interest to data hounds. The heat maps are linked below ... If you're a current subscriber, login to get the maps. If not, subscribe today! 2/24/2012   10:30 PM EST   Permlink   save & share Value Investing Graham Net Net February Update I've refreshed the list of Canadian and U.S. Net Net stocks due to popular demand. These are stocks trading at a discount to current assets less all liabilities. Ben Graham originally suggested stocks trading at 66% of their Net Net value. I was more generous and started my search at 100% or less of Net Net. You'll remember that a stock's Net Net is equal to its current assets less all liabilities. It should come as no surprise that there are relatively few Net Net candidates and they tend to be very small stocks indeed. Data on these very small stocks tends to be uneven at best. Indeed, looking for Net Nets can be a good way to uncover database errors or bankrupt companies. Nonetheless, you can occasionally spot a gem or two. But, before diving in, make sure you go the extra mile to check the data and beware that many of these stocks are extraordinarily illiquid. In such cases, market orders can lead to poverty. Buying stocks indiscriminately from a Net Net list can be dangerous. If it's dangerous, why bother? Because the returns have been quite good as Montier showed in his article "Graham's net-nets: outdated or outstanding?" which can be found in his book "Value Investing". (Hint: The answer is outstanding.) You just have to sort through the dross. The two tables below present raw data. To help discriminate between the bankrupt companies and those that are not quite dead yet, I've sorted them by Market Capitalization from high to low. It's not perfect but broken companies usually appear lower down on the list. Also, for NASDAQ stocks, a trailing Q in a 5 letter ticker symbol is a bad sign. Here are the lists of Canadian and U.S. stocks that pass the Net Net test ... If you're a current subscriber, login to see the tables. If not, subscribe today! 2/17/2012   11:03 PM EST   Permlink   save & share Value Investing Stingy Stock February Update Our Stingy Stock method is very popular and, we're pleased to say, that it has also been highly profitable. Table 1: Past Performance Period Stingy Stocks S&P500 (SPY) +/- 2001 - 2002 -1.9% -22.1% 20.2 2002 - 2003 33.8% 23.0% 10.8 2003 - 2004 29.8% 13.4% 16.4 2004 - 2005 29.2% 8.2% 21.0 2005 - 2006 28.9% 12.6% 16.3 2006 - 2007 -5.5% 7.4% -12.9 2007 - 2008 -40.1% -37.5% -2.6 2008 - 2009 64.5% 26.0% 38.5 2009 - 2010 69.4% 12.4% 57.0 2010 - 2011 -16.1% -0.3% -15.7 Total Gain Since Inception 275.5% 25.4% 250.0 After the huge run, it won't surprise you that we've had several requests for updates from keen investors. But before revealing the current list of Stingy Stocks, let's take a quick look at some of the criteria we used to find them. Stingy Stock Criteria 1. A member of the S&P500 2. Debt-to-Equity Ratio less than or equal to 0.5 3. Current Ratio of more than 2 4. Interest Coverage of more than 2 5. Some Cash Flow from Operations 6. Some Earnings 7. Price to Sales ratio of less than 1 You can learn even more about the approach by perusing this year's article. The rest of this update has been reserved for Rothery Report subscribers. If you're a current subscriber, just login. If not, subscribe today! 2/17/2012   10:12 PM EST   Permlink   save & share Value Investing Graham Net Net January Update I've refreshed the list of Canadian and U.S. Net Net stocks due to popular demand. These are stocks trading at a discount to current assets less all liabilities. Ben Graham originally suggested stocks trading at 66% of their Net Net value. I was more generous and started my search at 100% or less of Net Net. You'll remember that a stock's Net Net is equal to its current assets less all liabilities. It should come as no surprise that there are relatively few Net Net candidates and they tend to be very small stocks indeed. Data on these very small stocks tends to be uneven at best. Indeed, looking for Net Nets can be a good way to uncover database errors or bankrupt companies. Nonetheless, you can occasionally spot a gem or two. But, before diving in, make sure you go the extra mile to check the data and beware that many of these stocks are extraordinarily illiquid. In such cases, market orders can lead to poverty. Buying stocks indiscriminately from a Net Net list can be dangerous. If it's dangerous, why bother? Because the returns have been quite good as Montier showed in his article "Graham's net-nets: outdated or outstanding?" which can be found in his book "Value Investing". (Hint: The answer is outstanding.) You just have to sort through the dross. The two tables below present raw data. To help discriminate between the bankrupt companies and those that are not quite dead yet, I've sorted them by Market Capitalization from high to low. It's not perfect but broken companies usually appear lower down on the list. Also, for NASDAQ stocks, a trailing Q in a 5 letter ticker symbol is a bad sign. Here are the lists of Canadian and U.S. stocks that pass the Net Net test ... If you're a current subscriber, login to see the tables. If not, subscribe today! 1/28/2012   1:10 PM EST   Permlink   save & share Value Investing Stingy Stock January Update Our Stingy Stock method is very popular and, we're pleased to say, that it has also been highly profitable. Table 1: Past Performance Period Stingy Stocks S&P500 (SPY) +/- 2001 - 2002 -1.9% -22.1% 20.2 2002 - 2003 33.8% 23.0% 10.8 2003 - 2004 29.8% 13.4% 16.4 2004 - 2005 29.2% 8.2% 21.0 2005 - 2006 28.9% 12.6% 16.3 2006 - 2007 -5.5% 7.4% -12.9 2007 - 2008 -40.1% -37.5% -2.6 2008 - 2009 64.5% 26.0% 38.5 2009 - 2010 69.4% 12.4% 57.0 2010 - 2011 -16.1% -0.3% -15.7 Total Gain Since Inception 275.5% 25.4% 250.0 After the huge run, it won't surprise you that we've had several requests for updates from keen investors. But before revealing the current list of Stingy Stocks, let's take a quick look at some of the criteria we used to find them. Stingy Stock Criteria 1. A member of the S&P500 2. Debt-to-Equity Ratio less than or equal to 0.5 3. Current Ratio of more than 2 4. Interest Coverage of more than 2 5. Some Cash Flow from Operations 6. Some Earnings 7. Price to Sales ratio of less than 1 You can learn even more about the approach by perusing this year's article. The rest of this update has been reserved for Rothery Report subscribers. If you're a current subscriber, just login to discover interesting value stocks. If not, subscribe today! 1/28/2012   12:40 PM EST   Permlink   save & share Value Investing Stingy Stock December Update Our Stingy Stock method is very popular and, we're pleased to say, that it has also been highly profitable. Table 1: Past Performance Period Stingy Stocks S&P500 (SPY) +/- 2001 - 2002 -1.9% -22.1% 20.2 2002 - 2003 33.8% 23.0% 10.8 2003 - 2004 29.8% 13.4% 16.4 2004 - 2005 29.2% 8.2% 21.0 2005 - 2006 28.9% 12.6% 16.3 2006 - 2007 -5.5% 7.4% -12.9 2007 - 2008 -40.1% -37.5% -2.6 2008 - 2009 64.5% 26.0% 38.5 2009 - 2010 69.4% 12.4% 57.0 Total Gain Since Inception 347.3% 25.8% 321.5 After the huge run, it won't surprise you that we've had several requests for updates from keen investors. But before revealing the current list of Stingy Stocks, let's take a quick look at some of the criteria we used to find them. Stingy Stock Criteria 1. A member of the S&P500 2. Debt-to-Equity Ratio less than or equal to 0.5 3. Current Ratio of more than 2 4. Interest Coverage of more than 2 5. Some Cash Flow from Operations 6. Some Earnings 7. Price to Sales ratio of less than 1 You can learn even more about the approach by perusing this year's article. The rest of this update has been reserved for Rothery Report subscribers. If you're a current subscriber, just login to discover interesting value stocks. If not, subscribe today! 12/2/2011   8:20 PM EST   Permlink   save & share Value Investing Graham Net Net December Update I've refreshed the list of Canadian and U.S. Net Net stocks due to popular demand. These are stocks trading at a discount to current assets less all liabilities. Ben Graham originally suggested stocks trading at 66% of their Net Net value. I was more generous and started my search at 100% or less of Net Net. You'll remember that a stock's Net Net is equal to its current assets less all liabilities. It should come as no surprise that there are relatively few Net Net candidates and they tend to be very small stocks indeed. Data on these very small stocks tends to be uneven at best. Indeed, looking for Net Nets can be a good way to uncover database errors or bankrupt companies. Nonetheless, you can occasionally spot a gem or two. But, before diving in, make sure you go the extra mile to check the data and beware that many of these stocks are extraordinarily illiquid. In such cases, market orders can lead to poverty. Buying stocks indiscriminately from a Net Net list can be dangerous. If it's dangerous, why bother? Because the returns have been quite good as Montier showed in his article "Graham's net-nets: outdated or outstanding?" which can be found in his book "Value Investing". (Hint: The answer is outstanding.) You just have to sort through the dross. The two tables below present raw data. To help discriminate between the bankrupt companies and those that are not quite dead yet, I've sorted them by Market Capitalization from high to low. It's not perfect but broken companies usually appear lower down on the list. Also, for NASDAQ stocks, a trailing Q in a 5 letter ticker symbol is a bad sign. Here are the lists of Canadian and U.S. stocks that pass the Net Net test ... If you're a current subscriber, login to see the tables. If not, subscribe today! 12/2/2011   7:30 PM EST   Permlink   save & share Value Investing Stingy Stock October Update Our Stingy Stock method is very popular and, we're pleased to say, that it has also been highly profitable. Table 1: Past Performance Period Stingy Stocks S&P500 (SPY) +/- 2001 - 2002 -1.9% -22.1% 20.2 2002 - 2003 33.8% 23.0% 10.8 2003 - 2004 29.8% 13.4% 16.4 2004 - 2005 29.2% 8.2% 21.0 2005 - 2006 28.9% 12.6% 16.3 2006 - 2007 -5.5% 7.4% -12.9 2007 - 2008 -40.1% -37.5% -2.6 2008 - 2009 64.5% 26.0% 38.5 2009 - 2010 69.4% 12.4% 57.0 Total Gain Since Inception 347.3% 25.8% 321.5 After the huge run, it won't surprise you that we've had several requests for updates from keen investors. But before revealing the current list of Stingy Stocks, let's take a quick look at some of the criteria we used to find them. Stingy Stock Criteria 1. A member of the S&P500 2. Debt-to-Equity Ratio less than or equal to 0.5 3. Current Ratio of more than 2 4. Interest Coverage of more than 2 5. Some Cash Flow from Operations 6. Some Earnings 7. Price to Sales ratio of less than 1 You can learn even more about the approach by perusing this year's article. The rest of this update has been reserved for Rothery Report subscribers. If you're a current subscriber, just login to discover interesting value stocks. If not, subscribe today! 10/22/2011   7:30 PM EST   Permlink   save & share Value Investing U.S. Stock Market Ratios With the U.S. stock market in upheaval, it's a good idea to take a look at how expensive the market has been historically by examining Price/Sales and Price/Book Value graphs. While the market isn't as cheap as it was in 2009, I think that it's fair to say that it is less expensive than it has been for much of the last 20 years. Nonetheless, further declines are certainly possible because we aren't at blow-out valuations seen in the more distant past. Source Data: Bloomberg 8/20/2011   4:00 PM EST   Permlink   save & share Markets Stingy Stock August Update Our Stingy Stock method is very popular and, we're pleased to say, that it has also been highly profitable. Table 1: Past Performance Period Stingy Stocks S&P500 (SPY) +/- 2001 - 2002 -1.9% -22.1% 20.2 2002 - 2003 33.8% 23.0% 10.8 2003 - 2004 29.8% 13.4% 16.4 2004 - 2005 29.2% 8.2% 21.0 2005 - 2006 28.9% 12.6% 16.3 2006 - 2007 -5.5% 7.4% -12.9 2007 - 2008 -40.1% -37.5% -2.6 2008 - 2009 64.5% 26.0% 38.5 2009 - 2010 69.4% 12.4% 57.0 Total Gain Since Inception 347.3% 25.8% 321.5 After the huge run, it won't surprise you that we've had several requests for updates from keen investors. But before revealing the current list of Stingy Stocks, let's take a quick look at some of the criteria we used to find them. Stingy Stock Criteria 1. A member of the S&P500 2. Debt-to-Equity Ratio less than or equal to 0.5 3. Current Ratio of more than 2 4. Interest Coverage of more than 2 5. Some Cash Flow from Operations 6. Some Earnings 7. Price to Sales ratio of less than 1 You can learn even more about the approach by perusing this year's article. The rest of this update has been reserved for Rothery Report subscribers. If you're a current subscriber, just login to discover interesting value stocks. If not, subscribe today! 8/20/2011   3:00 PM EST   Permlink   save & share Value Investing Graham Net Net August Update I've refreshed the list of Canadian and U.S. Net Net stocks due to popular demand. These are stocks trading at a discount to current assets less all liabilities. Ben Graham originally suggested stocks trading at 66% of their Net Net value. I was more generous and started my search at 100% or less of Net Net. You'll remember that a stock's Net Net is equal to its current assets less all liabilities. It should come as no surprise that there are relatively few Net Net candidates and they tend to be very small stocks indeed. Data on these very small stocks tends to be uneven at best. Indeed, looking for Net Nets can be a good way to uncover database errors or bankrupt companies. Nonetheless, you can occasionally spot a gem or two. But, before diving in, make sure you go the extra mile to check the data and beware that many of these stocks are extraordinarily illiquid. In such cases, market orders can lead to poverty. Buying stocks indiscriminately from a Net Net list can be dangerous. If it's dangerous, why bother? Because the returns have been quite good as Montier showed in his article "Graham's net-nets: outdated or outstanding?" which can be found in his book "Value Investing". (Hint: The answer is outstanding.) You just have to sort through the dross. The two tables below present raw data. To help discriminate between the bankrupt companies and those that are not quite dead yet, I've sorted them by Market Capitalization from high to low. It's not perfect but broken companies usually appear lower down on the list. Also, for NASDAQ stocks, a trailing Q in a 5 letter ticker symbol is a bad sign. Here are the lists of Canadian and U.S. stocks that pass the Net Net test ... If you're a current subscriber, login to see the tables. If not, subscribe today! 8/20/2011   2:20 PM EST   Permlink   save & share Value Investing
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Disclaimers: Consult with a qualified investment advisor before trading. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. More...