"In my whole life, I have known no wise people (over a broad
subject matter area) who didn't read all the time - none, zero. You'd
be amazed at how much Warren reads - at how much I read. My
children laugh at me. They think I'm a book with a couple of legs
sticking out."  - Charlie Munger


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

Is debt your destiny?
http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/IsDebtYourDestiny.aspx
"Credit changes the way we spend and think. If you're broke,
research shows, there's a good chance you'll stay that way a long
time. But there are ways to fight the pattern."

Financial advisers vs. academia
http://www.canadianbusiness.com/columnists/larry_macdonald/article.jsp?content=20080828_115356_35592
"Do investors need financial advisers? Not according to some
university professors and other researchers. Financial advisers say
they have the expertise to guide investors to better results and
can keep them from making mistakes such as under-diversifying,
chasing hot funds/stocks, and selling out at the bottom of a
bear market. However, empirical studies carried out by academics
find otherwise. Let's take a look at three."

A nightmare on Wall Street
http://www.economist.com/finance/displaystory.cfm?story_id=12010659
"Like a Hollywood monster that is impervious to bullets, the
credit crisis refuses to lie down and die. The authorities have
bombarded it with interest-rate reductions, tax cuts, special
liquidity schemes and bank bail-outs, but still the creature lumbers
forward, threatening new victims with every step. Global
stockmarkets are suffering double-digit losses this year, and credit
markets are once again gummed up."

September: The horror story
http://www.marketwatch.com/news/story/story.aspx?guid={3C0FD971-CFBE-4D2F-894B-648A2535F214}
"The Dow during the average September has lost 1.13%, which
compares to an average gain among all other months over the last 112
years of 0.75%. That works out to an average spread between
September and all others months of 1.88 percentage points per month
-- which is impressively large. Nor is September's awful record
the result of just a few years in the sample. The pattern in
fact is remarkably consistent: September was among the worst
performing months in all but one of the decades of the 20th century.
Only between 1911 and 1920 was its performance above par, when
its average performance for the decade came in second."

The Halloween effect in US sectors
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=901088
"All US stock market sectors and industries perform better during
winter than during summer in our sample from 1926-2005. In more
than two-third of all sectors and industries this difference in
summer and winter returns, known as the Halloween effect, is
statistically significant and in half of all sectors and
industries risk premia are negative during summer. However, while all
sectors and industries show this effect, there are large
differences across sectors and industries. The effect is almost absent in
sectors related to consumer consumption but strong in production
sectors."

There's more to the story than dividend yield
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20080827/RCRUNCHER27
"There are two ways a company returns capital to shareholders:
dividends and share buybacks. True yield measures the dividend
yield, adjusted for any growth or shrinkage in the number of shares
outstanding."

Real national prices decline to Q4 2002 levels
http://calculatedrisk.blogspot.com/2008/08/case-shiller-real-national-prices.html
"In real terms, the Case-Shiller National Home price index is off
25% from the peak. Real prices are now back to the Q4 2002
level (nominal prices are back to mid-2004)."

Consumers as accurate as economists
http://www.livescience.com/culture/080827-consumers-inflation.html
"Thomas and Alan Grant of Baker University in Kansas analyzed
surveys of U.S. and Australian consumers collected from 1978
through 2005. For the U.S. data they used the Michigan Survey, which
involves monthly telephone interviews with 500 households. The
U.S. respondents were asked several questions, including how much
prices will go up or down in the next 12 months. On average, the
consumers predicted inflation rates that were off by 1.1
percentage points. The researchers compared the results with those
found with the Livingston Survey of professional economists,
finding a similar error in predictions."

An active value strategy in disguise
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1184848
"In this paper we critically examine the novel concept of
fundamental indexation. We argue that fundamental indexation is by
definition nothing more than an (elegant) value strategy, because
the weights of stocks in a fundamental index and a market
capitalization-weighted index only differ as a result of differences in
valuation ratios. Moreover, fundamental indices more resemble
active investment strategies than classic passive indices, because
(i) they appear to be at odds with market equilibrium, (ii)
they do not represent a buy-and-hold strategy and (iii) they
require several subjective choices. Last but not least, because
fundamental indices are primarily designed for simplicity and appeal,
they are unlikely to be the most efficient way of benefiting
from the value premium. Compared to more sophisticated,
multi-factor quantitative strategies, fundamental indexation is likely to
be an even more inferior proposition."

These Olympics are unreal
http://sports.espn.go.com/espnmag/story?id=3542649
"These Olympics are unreal. And that's not a good
thing exactly how we planned it."

Wise investing: no substitute for saving
http://www.portfolio.com/views/blogs/market-movers/2008/08/25/wise-investing-no-substitute-for-saving
"The problem is that while the financial-services industry is
very good at marketing and selling investment products, it's very
bad at marketing and selling thrift, and living within one's
means. After all, the only thing which is marketed more aggressively
than investments is credit products. But if you want a
financially comfortable retirement, the first best and pretty much only
thing you need to do is save a lot of money while you're
working."

The backstory on the Buffett book
http://online.wsj.com/article/SB121944783513865189.html
"One of the most anticipated books of the fall is "The Snowball:
Warren Buffett and the Business of Life." The title's publisher,
Bantam, paid $7.2 million for the North American rights and
expects to sell more than 1 million hardcover copies of "The
Snowball," which is due out Sept. 29. Few investors have generated as
much sustained public interest as Mr. Buffett, one of the
world's richest men, with a fortune estimated as high as $62 billion.
R.R. Bowker's Books in Print says there are an estimated 60
titles in print about him, with more than a dozen new ones on tap
this year. Now Bantam is about to find out whether there's a limit
to Buffetmania."


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)                               1   5   3   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)                3   4   4   5   5    5
Husky Energy (HSE)                          5   2   2   3   5    5
Telus (T)                                   5   4   4   5   5    5
Royal Bank (RY)                             3   3   4   5   5    5
Bank of Nova Scotia (BNS)                   3   2   3   1   5    5
Toronto Dominion Bank (TD)                  4   4   3   3   5    5
BCE (BCE)                                   5   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
========================================== === === === === === =====
Thomson (TOC)                               5   4   2   2   4   1.9
Biovail (BVF)                               1   5   3   5   5   2.0
Bank of Montreal (BMO)                      4   4   4   1   5   2.1
Husky Energy (HSE)                          5   2   2   3   5   2.2
Telus (T)                                   5   4   4   5   5   2.4
BCE (BCE)                                   5   3   3   4   4   2.6
Toronto Dominion Bank (TD)                  4   4   3   3   5   2.8
Sun Life (SLF)                              4   5   5   1   4   3.0
Royal Bank (RY)                             3   3   4   5   5   3.1
Bank of Nova Scotia (BNS)                   3   2   3   1   5   3.2
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  124.21 1032.2
Magna Cl.A (MG.A)                           4   5   3   94.91  55.65
Thomson (TOC)                               5   4   4   55.77  48.79
Petro Canada (PCA)                          5   4   3   66.57  41.78
Canadian Tire (CTC.A)                       4   5   3   65.07  20.57
Sun Life (SLF)                              4   5   4   49.09  19.87
Weston George (WN)                          4   5   4   52.43  11.25
Inmet Mining (IMN)                          5   4   1   68.83   7.62
Telus (T)                                   5   4   5   44.79   5.02
Nova (NCX)                                  5   3   2   32.32   4.95
Bank of Montreal (BMO)                      4   4   5   48.08   3.33
First Quantum Minerals Ltd. (FM)            5   2   2   68.73   0.33
Canadian Pacific Rail (CP)                  4   4   2   64.84   0.09
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

Common Stocks and Uncommon Profits
by Philip A. Fisher

Fisher takes a qualitative view of stocks and stresses the
importance of intangible aspects of a firm with heavy emphasis on
research and human capital. He also falls into the focused camp of
investors who buy only a few carefully selected stocks and hold
them for long periods. As Warren Buffett's second favourite book
on investing, Common Stocks and Uncommon Profits is a must read
for students of the market.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0471445509/


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.