"Thousands of experts study overbought indicators, oversold
indicators, head-and-shoulder patterns, put-call ratios, the Fed's
policy on money supply, foreign investment, the movement of the
constellations through the heavens, and the moss on oak trees, and
they can't predict markets with any useful consistency, any more
than the gizzard squeezers could tell the Roman emperors when
the Huns would attack."  - Peter Lynch


New @ StingyInvestor


5 Stingy Stocks for 2008
http://www.ndir.com/SI/articles/0108.shtml
"I look for two qualities when hunting for bargain stocks: they must be
cheap and relatively safe. Not surprisingly, it is often difficult to find
stocks that are both cheap and safe."


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

Why your wallet feels thinner
http://www.forbes.com/home/entrepreneursfinance/2008/02/15/inflation-interest-rates-ent-fin-cx_ml_0215inflation.html
"The U.S. Federal Reserve has been slashing interest rates to stave off a
recession. One potential risk to that strategy: inflation. The bad news is
that prices for many everyday items had already been ticking up, according
to data from December 2004 and December 2007 collected by the U.S.
Department of Labor. During that period, the Consumer Price Index, which
measures the average change in prices over time for a basket of consumer goods
and services, grew at a 3% annualized clip. But prices for many everyday
items are rising even faster--and that's making everyone's wallet feel a
little thinner."

Berkshire becomes largest Kraft shareholder
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=abQzEq5yQrC4
"Buffett, the second-richest man in the U.S., is often mimicked by
investors who follow his stock picks. Using that strategy for the past 31 years
would have delivered annual returns of about 25 percent, double the return
of the Standard & Poor's 500 Index, according to an academic study."

Seth Klarman's talk at MIT
http://adriansaville.blogspot.com/2008/01/about-leverage-volatility-and-finding.html
"Many investors lack a strategy that equips them to deal with a rise in
volatility and declining markets. Momentum investors become lost when the
momentum wanes. Growth investors - who pay a premium for the fastest growing
companies - don't know what to do when the expected growth fails to
materialize. Highly leveraged investors, like some quant funds in the headlines,
were recently forced to sell regardless of value when their methodology
produced losses rather than gains. Counting on a government bailout for
every market crisis seems a dicey proposition, especially when supposedly
impossible events happen on Wall Street every few years. By the time the
market drops and bad news is on the front pages, it is usually too late for
investors to react. It is crucial to have a strategy in place before
problems hit, precisely because no one can accurately predict the future
direction of the stock market or economy. Value investing, the strategy of buying
stocks at an appreciable discount from the value of the underlying
businesses, is one strategy that provides a road map to successfully navigate not
only through good times but also through turmoil. Buying at a discount
creates a margin of safety for the investor.room for imprecision, error, bad
luck or the vicissitudes of volatile markets and economies. Following a
value approach won.t be easy for everyone, especially in today.s
media-dominated, short-term oriented markets, in that it requires deep reservoirs of
patience and discipline. Yet it is the only truly risk averse strategy in
a world where nearly all of us are, or should be, risk averse."

Want higher returns? Don't take Prozac
http://www.reuters.com/article/reutersComService4/idUSL1363744720080214
" Take it from Montier, a well known bear, pessimism is not an easy road,
even though it may be a straight one. "Nobody likes a bear," he said. "As a
career move bearishness is not a great idea, in a bull market nobody
listens and in a bear market nobody will pay you.""

Bill Miller Q4 2007
http://www.lmcm.com/pdf/miller_commentary/2008-02_miller_commentary.pdf
"I believe equity valuations in general are attractive now, and I believe
they are compelling in those areas of the market that have performed poorly
over the past few years. Traders and those with short attention spans may
still be fearful, but long-term investors should be well rewarded by
taking advantage of the opportunities in today's stock market."

Snow White killed the 'triple-A'
http://www.businessspectator.com.au/bs.nsf/Article/Snow-White-killed-the-triple-A-BRR2T?OpenDocument
"Well, when a company issues a 14 per cent bond when US Treasuries are
below 4 percent and it's rated triple-A, we've now seen the cow jumping over
the moon."

Wall Street losses partners never imagined
http://www.bloomberg.com/apps/news?pid=20601109&sid=a8wXme0GUnco&refer=home
"Less than a decade after Wall Street's last major partnership went public,
stockholders are paying the price for bankrolling the industry's
expanding risk appetite. Four of the five biggest U.S. securities firms lost about
$83 billion of market value last year, almost 90 percent of their net
income since 1999, data compiled by Bloomberg show. That cut the annual
average return for Morgan Stanley, Merrill Lynch & Co., Lehman Brothers
Holdings Inc. and Bear Stearns Cos. during those nine years to 9.7 percent from
16.8 percent. The private partnerships that once dominated Wall Street
guarded their capital, used less leverage and limited their risk to trading
blocks of stock for clients and shares of companies in mergers, said Roy
Smith, a finance professor at New York University's Stern School of Business
and a former partner at Goldman Sachs Group Inc. Since raising money from
the public, many of the biggest firms have abandoned that caution."


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
CIBC (CM)                                       5   4   4   3   5    5
Bank of Montreal (BMO)                          3   4   4   4   5    5
National Bank of Canada (NA)                    3   4   4   3   5    5
Telus (T)                                       3   4   3   4   5    5
BCE (BCE)                                       4   3   3   4   5    5
Royal Bank (RY)                                 4   3   3   2   5    5
Bank of Nova Scotia (BNS)                       4   3   2   2   5    5
TransCanada (TRP)                               2   3   2   3   5    5
Toronto Dominion Bank (TD)                      4   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)                                   5   5   2   5   5   0.6
CIBC (CM)                                       5   4   4   3   5   1.3
Thomson (TOC)                                   5   4   2   3   4   1.7
Bank of Montreal (BMO)                          3   4   4   4   5   2.4
Royal Bank (RY)                                 4   3   3   2   5   2.9
Telus (T)                                       3   4   3   4   5   2.9
Bank of Nova Scotia (BNS)                       4   3   2   2   5   2.9
Teck Cominco Limited (TCK.B)                    5   4   4   5   4   2.9
BCE (BCE)                                       4   3   3   4   5   3.0
Husky Energy (HSE)                              5   2   4   5   4   3.2
More Info: http://www.stingyinvestor.com/SI/strategy/valueratio.shtml 

Graham Stocks                                  P/E P/B P/D   G$   dG$(%)
============================================== === === === ====== ======
ACE Aviation Holdings Inc. (ACE.B)              5   5   0   65.92 183.29
MDS Inc. (MDS)                                  5   5   0   40.96 143.82
Lundin Mining Corporation (LUN)                 5   5   0   16.99 115.58
Thomson (TOC)                                   5   4   4   48.90  40.52
Biovail (BVF)                                   5   5   5   19.00  34.47
Magna Cl.A (MG.A)                               4   5   3   99.33  23.12
CIBC (CM)                                       5   4   5   78.72  18.69
Talisman Energy (TLM)                           5   4   2   17.27   9.36
Petro Canada (PCA)                              5   4   2   49.90   7.99
Teck Cominco Limited (TCK.B)                    5   4   4   35.76   7.44
Sun Life (SLF)                                  4   5   4   49.19   3.55
Canadian Tire Corporation Limited (CTC.A)       4   4   2   62.69   0.43
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.
http://www.stingyinvestor.com/cgi-bin/email.cgi 


Books for Stingy Investors

The Aggressive Conservative Investor
by Martin Whitman & Martin Shubik

Originally published in 1979, this value classic is once again in
bookstores with a new introduction but most of the tome remains
unchanged. Aside from providing a glimpse into investing in the
late 1970s, much of Whitman's basic moneymaking approach, which
focuses on balance sheet values, continues to apply today. A
great book for more seasoned investors but it might be a little
heavy for some.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0471768057/


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 12/31/2007)
  Average Capital Gain    Average Holding Period
          45.2%                   2.4 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., 2008.
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.