"Only buy something that you'd be perfectly happy to hold if the
market shut down for 10 years."  - Warren Buffett


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

SEC retrenches on new short-selling rules
http://www.forbes.com/home/2008/07/18/sec-short-trading-biz-cx_em_0718nakedshort.html
"Under the new rule, the SEC will require short-sellers to secure
borrowed shares before putting on their short sales, preventing
"naked" short-selling, in which a trader doesn't properly
locate shares to borrow. Naked short-selling can add extra downward
momentum on a stock because without being forced to borrow the
shares first, traders can short a limitless amount of stock. But
the emergency rule, which is in effect for 30 days, only applied
to those 19 companies among Wall Street's biggest. They are
companies whose shares are not typically hard to locate or scarce
for shorting, a fact that angered many earlier in the week. The
American Bankers Association wants the SEC to include shares of
regional banks under the requirements, and no doubt hundreds of
small company chief executives would also like to be covered."

Prepare to have a nose for a bargain
http://www.ft.com/cms/s/0/79e789e2-54e0-11dd-ae9c-000077b07658.html
"Stocks should be bought like groceries and not like perfume. A
few days ago, I was reminded of this advice from Ben Graham, the
father of value investing, by David Shapiro, the manager of the
value-orientated Collins Stewart UK Focus Fund. And with the
FTSE 100 index falling 250 points between last Friday and this
Wednesday . wiping more than 50bn off the value of the UK.s top
companies . the equity market certainly seems more like Aldi or Lidl
than an eau de toilette counter at Harrods. In fact, the scent
wafting from most dealing desks has smelled suspiciously like
Whiff of Fear."

John Templeton
http://www.economist.com/obituary/displaystory.cfm?story_id=11745591
"Sir John Templeton spent his life going against the flow. In
September 1939, when the war-spooked world was selling, he borrowed
$10,000 to buy 100 shares in everything that was trading for
less than a dollar a share on the New York Stock Exchange. All but
four eventually turned profits. In early 2000, conversely, he
sold all his dotcom and Nasdaq tech stocks just before the market
crashed. His iron principle of investing was 'to buy when
others are despondently selling and to sell when others are greedily
buying'. At the point of 'maximum pessimism' he would enter, and
clean up."

S&P500 dividend yield highest since June 1995
http://bespokeinvest.typepad.com/bespoke/2008/07/sp-500-dividend.html
"The S&P 500 is currently yielding the most it has since June
1995 at 2.49%. After declining for about 20 years from the early
80s to the late 90s, the dividend yield has been on a steady rise
this decade."

Seeing bad loans
http://www.nytimes.com/2008/07/16/business/16bank.html
"While a fraction of the nation's banks are expected to buckle
under their growing burden of bad loans, federal regulators, bank
executives and analysts agree that the vast majority of
institutions are sound. Bank customers are not panicking, particularly
since most of their deposits are insured. But shareholders, whose
investments are by no means guaranteed, are running scared. It
is becoming increasingly clear that even the strongest banks
will be grappling with bad loans for years - and that the outlook
for the industry could worsen further if the economy and the
housing market continue to weaken. The collapse of IndyMac Bancorp
last week fanned long-smoldering worries that even healthy banks
confront significant challenges."

Curbing short-selling abuse
http://www.forbes.com/2008/07/15/sec-shorting-stocks-biz-cx_lm_0715nakedshort.html
"The naked short regulations promise to have more teeth than last
weekend's announcement that the SEC would police rumors on Wall
Street. That was widely interpreted as a weak attempt to herd
cats. Traders now won't be able to skirt borrowing rules to short
shares of a rival firm. Up until now, traders were merely
required to "locate" shares they'd be borrowing to short. As in:
"Yeah, my cousin Vinny in Hoboken has them." The location
requirement is a weaker standard that leaves plenty of room for
"interpretation" if not outright abuse. Pre-borrowing is a much firmer
commitment and eliminates the probability that a stock lender will
lend out the same shares to several different traders."

SEC to limit short sales
http://www.bloomberg.com/apps/news?pid=20601087&sid=aPokh6La9.HY&refer=home
"The requirement would prohibit the practice known as naked short
selling, in which traders avoid the financial burden of
borrowing shares when betting they'll fall." [A long overdue move.]

European recession looms
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/15/ccspain115.xml&CMP=ILC-mostviewedbox
"The eurozone is tipping into a deeper downturn than America
itself despite the tremors in the US mortgage industry, and may
already be in full recession for the first time since the launch of
the single currency."

Nation demands new bubble
http://www.theonion.com/content/news/recession_plagued_nation_demands
"A panel of top business leaders testified before Congress about
the worsening recession Monday, demanding the government provide
Americans with a new irresponsible and largely illusory
economic bubble in which to invest. "What America needs right now is
not more talk and long-term strategy, but a concrete way to create
more imaginary wealth in the very immediate future," said
Thomas Jenkins, CFO of the Boston-area Jenkins Financial Group, a
bubble-based investment firm. "We are in a crisis, and that crisis
demands an unviable short-term solution.""

Scotiabank to buy E*TRADE Canada
http://www.newswire.ca/en/releases/archive/July2008/14/c4216.html
"Scotiabank will purchase E(*)TRADE Canada for USD$442 million
(approximately C$444 million), subject to regulatory approvals.
The completion of today's announcement will double Scotiabank's
footprint in the Canadian online investing market." [There goes
another independent broker.]

Paulson seeks authority to shore up Fannie, Freddie
http://www.bloomberg.com/apps/news?pid=20601087&sid=amUsJpIVnOvs&refer=home
"Treasury Secretary Henry Paulson put the weight of the federal
government behind Fannie Mae and Freddie Mac, the beleaguered
companies that buy or finance almost half of the $12 trillion of
U.S. mortgages. Paulson, speaking on the steps of the Treasury
facing the White House, asked Congress for authority to buy
unlimited stakes in and lend to the companies, aiming to stem a
collapse in confidence. The Federal Reserve separately authorized the
firms to borrow directly from the central bank."


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)                               4   5   4   5   5    5
Bank of Montreal (BMO)                      4   4   5   1   5    5
CIBC (CM)                                   0   4   5   5   5    5
National Bank of Canada (NA)                3   4   4   4   5    5
Royal Bank (RY)                             4   3   4   5   5    5
Telus (T)                                   5   4   4   5   5    5
Bank of Nova Scotia (BNS)                   3   3   3   1   5    5
Toronto Dominion Bank (TD)                  4   4   3   3   5    5
Husky Energy (HSE)                          4   2   3   3   5    5
TransCanada (TRP)                           3   4   3   4   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)                               4   5   4   5   5   0.6
Bank of Montreal (BMO)                      4   4   5   1   5   1.9
Thomson (TOC)                               5   4   2   2   4   1.9
Telus (T)                                   5   4   4   5   5   2.2
BCE (BCE)                                   5   3   3   4   4   2.2
Husky Energy (HSE)                          4   2   3   3   5   2.6
Toronto Dominion Bank (TD)                  4   4   3   3   5   2.6
Royal Bank (RY)                             4   3   4   5   5   2.6
Sun Life (SLF)                              4   5   4   1   4   3.0
Bank of Nova Scotia (BNS)                   3   3   3   1   5   3.1
More Info: http://www.stingyinvestor.com/SI/strategy/valueratio.shtml 

Graham Stocks                              P/E P/B P/D   G$   dG$(%)
========================================== === === === ====== ======
ACE Aviation (ACE.B)                        5   5   0   84.69 704.32
Magna Cl.A (MG.A)                           4   5   3   99.86  64.48
Thomson (TOC)                               5   4   4   55.77  48.79
Nova (NCX)                                  5   4   3   35.93  42.76
Biovail (BVF)                               4   5   5   14.13  36.91
Canadian Tire (CTC.A)                       5   5   3   67.01  28.86
Petro Canada (PCA)                          5   4   2   60.46  24.43
Sun Life (SLF)                              4   5   4   49.83  19.87
Inmet Mining (IMN)                          5   3   1   75.52  17.24
Weston George (WN)                          4   5   4   52.92  14.01
MDS Inc. (MDS)                              2   5   0   15.98  10.66
Telus (T)                                   5   4   5   44.42   9.59
Bank of Montreal (BMO)                      4   4   5   50.03   8.86
BCE (BCE)                                   5   3   4   40.00   3.41
Toronto Dominion Bank (TD)                  4   4   5   60.18   2.83
Canadian Pacific Rail (CP)                  4   4   2   68.78   1.61
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

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investors will find a great deal of useful information in his
book.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0393325350/


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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
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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
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