The Stingy News Weekly (02/02/03)
The Markets This Week
DOW 30: 8,054 -0.95% with a median P/E of 19.5
S&P/TSX: 6,569 -1.44% with a median P/E of 22.1
The Value View
Dow at a P/E of 20: 8,261 (+2.6%) Poor Value
Dow at a P/E of 15: 6,195 (-23.1%) Fair Value
Dow at a P/E of 10: 4,130 (-48.7%) Good Value
S&P/TSX at a P/E of 20: 5,945 (-9.5%) Poor Value
S&P/TSX at a P/E of 15: 4,459 (-32.1%) Fair Value
S&P/TSX at a P/E of 10: 2,972 (-54.8%) Good Value
New @ StingyInvestor
It's RRSP season, but don't panic
There is no reason to make rushed decisions when it comes to your
RRSP. To avoid last minute RRSP pressure simply follow the RRSP three
step; buy short-term debt, consult your investment policy, and wait to
buy the right securities for your portfolio. You may have to hurry to
make this year's RRSP contribution but you should take the time to
find great investments.
America For Less Than 2% a Year
I focus on the McLean Budden American Equity fund, which presents a
good combination of sustained performance and low cost.
Fun: Global Century Investments
"Thank you. At Global Century, we like to be completely upfront with our clients. That's why, in our prospectus, we clearly state that our investment advice is often self-interested or deceitful, and may work to our client's disadvantage. We think.. you deserve to know that."
FSA acts to halt stock sell-off
"The UK's financial watchdog is to relax solvency rules for life insurers to help them cope with falling stock markets."
Coke and 'The Numbers Game'
"The problem is that once a company attracts more transient investors through greater disclosure, the transient investors tend to destabilize the company's stock price through their frequent trading and their overreaction to news events"
Words from the Wise
"Cover Article in the Inaugural Issue of CFA, a new publication of the Association of Investment Management & Research"
Good riddance to guidance?
"What do Coca-Cola, McDonald's, AT&T and Sun Microsystems have in common...besides being well-known brand names that have recently fallen on hard times? The four companies all recently told investors they are no longer going to provide earnings guidance. And that's created a maelstrom of controversy on Wall Street."
The new global job shift
"The truth is, the rise of the global knowledge industry is so recent that most economists haven't begun to fathom the implications. For developing nations, the big beneficiaries will be those offering the speediest and cheapest telecom links, investor-friendly policies, and ample college grads. In the West, it's far less clear who will be the big winners and losers. But we'll soon find out."
Wanted: Kim Woo Choong
"The former Daewoo chairman disappeared from South Korea three years ago as his company was collapsing under a $65 billion pile of debt. Now, in an exclusive interview, he talks about his rise and fall--and his life in exile."
What to pack for prison
"Advice to white-collar criminals from a former stockbroker: It's jail, not Yale."
U.S. pension agency is sinking
"The U.S. federal agency that insures the pensions of about 44 million Americans has been pounded by a succession of big corporate bankruptcies and has burned through its entire $8 billion surplus in one year."
Perils of prophecy
"I have only one forecast concerning the future: It will unfold. I am not prepared to be more specific. Of all the bad months in which to try to predict the unpredictable, January is the worst. People are still eating Thanksgiving leftovers when the usual experts are rounded up to be asked the standard end-of-year questions. Where will the stock market be one year hence? The bond market? The CPI? A barrel of West Texas intermediate? Knowledgeable as they are, the experts are deficient in one point of information. They don't know anything more about the future than we do."
This week's trivia questions are: Q1. How many DOW stocks have an earnings yield of more than 5%? Q2. How many S&P500 stocks have an earnings yield of more than 5% Q3. How many S&P/TSX Composite stocks have an earnings yield of more than 5%? The answers to last week's trivia questions are: Q1. What was the worst year for the DOW? A1. 1931, down 52.7% Q2. What was the worst period for the DOW? A2. 1929 to 1932, down 89% Q3. How far has the DOW fallen since its peak in 2000? A3. 31.2% Source: The Bear Book & msn.com Symbol Search Can you find all the DOW stock symbols in the following text block? Repeat symbols are allowed, but diagonals are not. S M U G B I D N V R Y O D X R V L M J Z K Y N R A E Y O E A B B S G S M Q G E A A F Z I O A U D X I B M U Q H E P U H E D N Q D Number of hidden symbols: 8 The Stingy StoreDownload a sample of the Rothery Report Download a sample of Frugal Funds Subscribe Today Bullishly Yours, Norman Rothery ISSN 1499-2795 To (un)subscribe please use our email centre at http://www.stingyinvestor.com/cgi-bin/email.cgi Refer to legal & conflict of interest disclaimers at http://www.stingyinvestor.com/SI/legal.shtml http://www.stingyinvestor.com/SI/legal/conflict.shtml
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