"Get inside information from the president and you will probably
lose half of your money. If you get it from the chairman of the
board, you will lose all of it."  - Jim Rogers


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

Another inconvenient truth
http://www.economist.com/finance/displaystory.cfm?story_id=11921663
"America's infamous debt clock, near New York.s Times Square, was
switched off in 2000 after the national burden started to fall
thanks to several years of Clinton-era budget restraint.
However, it was reactivated two years later as the politically
motivated urge to splurge once again took over. The debt has since
swollen to $9.5 trillion, with the value of unfunded public promises
(if you include entitlements such as Social Security and
Medicare) nudging $53 trillion.or $175,000 for every American.and
rising. On current trends, these will amount to some 240% of GDP by
2040, up from a just-about-manageable 65% today."

Opening the door to savings
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20080814/RCESTNICK14
"I'm commonly asked: "Now that I'm married, what tax benefits
exist?" The fact is, having a spouse can come with some tax
opportunities. And by the way, a spouse under Canadian tax law includes
a common-law partner (same sex or not) that you've been living
with in a conjugal relationship for 12 months or more. So, when
I use the term "spouse" today, I'm referring to legally married
couples, or those common-law partners I just mentioned. While
there will be other ideas, the following are six of the key
opportunities available to spouses."

Foreclosure fallout: Houses go for a $1
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080813/METRO/808130360/&imw=Y
"So desperate was the bank owner of 8111 Traverse Street to
unload the property that it agreed to pay $2,500 in sales commission
and another $1,000 bonus for closing the $1 sale; the bank also
will pay $500 of the buyer's closing costs. Throw in back taxes
and a water bill, and unloading the house will cost the bank
about $10,000."

Longleaf Partners Q2 2008 letter
http://www.longleafpartners.com/pdfs/08_q2.pdf
"We do not know how long economic uncertainty and shareholder
fear will last. Bear markets do not die of old age. The mispricing,
however, is providing the opportunity to own high quality
companies with terrific five year outlooks that imply high long-term
IRRs. We are aggressively adding personal capital to the Funds
and encourage our partners to do the same. Given that bullish
sentiment is at its lowest level in 14 years and that some are
recommending exiting equities altogether, there is plenty of panic
in the air. Historically, the best time to invest has been when
owning stocks has felt the worst."

Third Avenue Q3 2008 letter
http://www.thirdavenuefunds.com/taf/documents/shareholderletters/aboutus-letters-08Q3.pdf
"Distress securities seem to be trading at ultra attractive
prices. Discounts have widened appreciably for the common stocks of
very well-capitalized companies where the common stocks trade at
meaningful discounts from readily ascertainable net asset values
('NAVs'); and where the prospects appear good that over the
next five years, such NAVs will increase by not less than 10% per
annum compounded. Admittedly, near-term outlooks are generally
poor. But, TAVF focuses not on the near-term outlook, but on
buying what is 'safe and cheap'. I have the unique perspective of
being a distressed investor for many decades, and safe and cheap on
a long-term basis seems to be about as attractive as it was in
the 1970s."

The wisdom of crowds?
http://www.slate.com/id/2196827/
"When people discover that I am an economist, they rarely ask me
for my views on subjects that economists know a bit about - such
as how to respond to climate change or pay less at a
supermarket. Instead, they ask me what will happen to the economy. Why is
it that people won't take "I don't really know" for an answer?
People often chuckle about the forecasting skills of economists,
but after the snickers die down, they keep demanding more
forecasts. Is there any reason to believe that economists can
deliver?"

One third owe more than house is worth
http://www.bloomberg.com/apps/news?pid=20601087&sid=a3rsglZgqmTs&refer=home
"Almost one-third of U.S. homeowners who bought in the last five
years now owe more on their mortgages than their properties are
worth, according to Zillow.com, an Internet provider of home
valuations."

Value stock losers Buffett, Miller poised as winners
http://www.bloomberg.com/apps/news?pid=20601213&sid=asNu6HYGu7eI&refer=home
"The five prior times since 1952 that growth beat value two years
in a row, the latter group recovered and won by 17 percentage
points annually on average for seven years, the data from Societe
Generale show. Cheap stocks are becoming more attractive
because of tumbling commodity shares, which had led the five-year bull
market that ended in October, according to Societe Generale's
James Montier"

Bankrupt retailers: pushed to the brink
http://www.businessweek.com/bwdaily/dnflash/content/aug2008/db20080811_680564.htm
"All filers are covered by the new bankruptcy law, but the
changes were particularly harsh on retailers. For companies that
already are short of cash - and, in the current environment, unlikely
to find new financing - these new provisions in the law can
amount to a death sentence. "Liquidity is sucked out of the debtor
in a way that it becomes hard to survive," says Lawrence
Gottlieb, chair of the bankruptcy and restructuring practice at New
York law firm Cooley Godward Kronish, who has represented
creditors' committees in the bankruptcies of Sharper Image and Linens 'n
Things."


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   4   1   5    5
CIBC (CM)                                   0   4   5   5   5    5
National Bank of Canada (NA)                2   4   4   4   5    5
Telus (T)                                   5   4   4   5   5    5
Husky Energy (HSE)                          5   2   2   3   5    5
Royal Bank (RY)                             3   2   4   5   5    5
Bank of Nova Scotia (BNS)                   3   2   3   1   5    5
Toronto Dominion Bank (TD)                  4   3   3   2   5    5
TransCanada (TRP)                           3   3   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
Thomson (TOC)                               5   4   2   2   4   1.9
Telus (T)                                   5   4   4   5   5   1.9
Husky Energy (HSE)                          5   2   2   3   5   2.0
Bank of Montreal (BMO)                      4   4   4   1   5   2.0
BCE (BCE)                                   5   3   3   4   4   2.6
Sun Life (SLF)                              4   5   5   1   4   2.8
Royal Bank (RY)                             3   2   4   5   5   2.9
Toronto Dominion Bank (TD)                  4   3   3   2   5   3.0
Petro Canada (PCA)                          5   4   5   4   3   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  123.38 945.61
Thomson (TOC)                               5   4   4   55.77  48.79
Magna Cl.A (MG.A)                           4   5   3   95.15  48.17
Petro Canada (PCA)                          5   4   3   66.56  48.04
Biovail (BVF)                               4   5   5   14.12  37.05
Canadian Tire (CTC.A)                       4   5   3   65.11  25.76
Sun Life (SLF)                              4   5   4   49.16  22.99
Inmet Mining (IMN)                          5   4   1   68.89  20.55
Telus (T)                                   5   4   5   44.84  16.50
Weston George (WN)                          4   5   4   52.54  13.93
Nova (NCX)                                  5   3   2   32.32  13.28
First Quantum Minerals Ltd. (FM)            5   2   2   68.79  11.12
Bank of Montreal (BMO)                      4   4   5   49.94   5.78
Canadian Pacific Rail (CP)                  3   4   3   64.85   2.29
Talisman Energy (TLM)                       5   3   2   17.58   0.55
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.
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Books for Stingy Investors

Buffett: The Making of an American Capitalist
by Roger Lowenstein

The Making of an American Capitalist is the best biography of
Warren Buffett that I've read. By reading this book, you'll find
out how a young Buffett made money selling Coca-Cola to his
friends and how an older Buffett cashed in with Coke's stock. You'll
also discover why Warren started buying Berkshire Hathaway's
stock below $8 per share and how he boosted its value to lofty
heights (currently near $80,000 per share). The Making of an American
Capitalist is a must have for Buffett fans.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0385484917/


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 06/30/2008)
  Average Capital Gain    Average Holding Period
          40.7%                   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.