"I don't read economic forecasts. I don't read the funny papers."  - Warren Buffett


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

Long-Term Capital: It's a short-term memory
http://www.nytimes.com/2008/09/07/business/07ltcm.html?_r=1&em&oref=slogin
"A financial firm borrows billions of dollars to make big bets on
esoteric securities. Markets turn and the bets go sour.
Overnight, the firm loses most of its money, and Wall Street suddenly
shuns it. Fearing that its collapse could set off a full-scale
market meltdown, the government intervenes and encourages private
interests to bail it out. The firm isn't Bear Stearns - it was
Long-Term Capital Management, the hedge fund based in Greenwich,
Conn., and the rescue occurred 10 years ago this month."

Student tax planning can save a bundle
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20080904/RCESTNICK04
"So, if you've got a child heading off to postsecondary school
this year, congratulations, I expect your child will make smarter
decisions. And there are some smart decisions related to your
child's tax planning that can help too. Let me share some of those
today."

U.S. takeover of Fannie, Freddie
http://www.bloomberg.com/apps/news?pid=20601087&sid=auCiw0BP4Fyk
"Under the plan, the Treasury will receive $1 billion of senior
preferred stock in coming days, with warrants representing
ownership stakes of 79.9 percent of Fannie and Freddie. The government
will receive annual interest of 10 percent on the initial
investments. As a condition for the assistance, Fannie and Freddie
will have to reduce their holdings of mortgages and securities
backed by home loans. The portfolios 'shall not exceed $850 billion
as of December 31, 2009, and shall decline by 10 percent per
year until it reaches $250 billion,' the Treasury said."

Mad TV - Free Credit Card
http://www.youtube.com/watch?v=MuKYP2cBvBA
A skit on the perils of credit from Mad TV

The 65 mpg Ford the U.S. can't have
http://www.businessweek.com/magazine/content/08_37/b4099060491065.htm
"If ever there was a car made for the times, this would seem to
be it: a sporty subcompact that seats five, offers a navigation
system, and gets a whopping 65 miles to the gallon. Oh yes, and
the car is made by Ford Motor (F), known widely for lumbering gas
hogs."

Your dog's bite could bankrupt you
http://articles.moneycentral.msn.com/Insurance/InsureYourHome/your-dogs-bite-could-bankrupt-you.aspx
"But all dog owners need to understand their potential liability
should their animal bite, maul or, heaven forbid, kill someone.
A single bite could cost you tens of thousands of dollars -- a
lawsuit hundreds of thousands -- and your insurance coverage
might not apply. If the attack is especially serious, you could even
go to jail."

Buffett becomes vulture
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aswAkIWAiJtk
"Ron Peltier runs HomeServices of America Inc., the
second-largest U.S. real estate brokerage, and unlike No. 1 NRT Inc., his
company is making money in the worst housing slump since the Great
Depression. HomeServices also has a parent, Warren Buffett's
Berkshire Hathaway Inc., with $28 billion of cash to help finance
the purchase of brokerages that can't weather the housing
recession. By contrast, NRT's parent Realogy Corp., owned by Leon
Black's Apollo Management LP, has at least $875 million of debt that
has an 89 percent chance of defaulting within five years,
credit-default swaps tracked by London-based CMA DataVision indicate."

10 questions for John Dorfman
http://www.thekirkreport.com/2008/09/10-questions-fo.html
"The Robot screen contains low P/E outliers. It calls our
attention to some of the very cheapest stocks in the market, in the
bottom percentile of price/earnings ratios. It screens out stocks
that have excessive debt. From this screen we recently bought Om
Group (OMG), the largest U.S. dealer in cobalt. It also deals in
metal powers. The stock is selling for less than book value and
less than six times earnings. We also bought some Cal-Maine
Foods (CALM). It produces and sells eggs. Now that some of the
crazier diet fads seem to be receding, I figure that eggs can
rebound a little bit as part of a well-rounded diet for most
Americans. The stock sells for 6 times earnings."

Buffett's best man
http://www.smartmoney.com/smartmoney-magazine/index.cfm?story=september2008-charlie-munger
"Munger, 84 and blind in one eye, walks stiffly to the stage. A
prestigious physics professor waits to interview him, but once
the lanky, thick-bespectacled guest starts blaspheming some
favorite targets, the prof rarely gets a word in edgewise. Munger's
topic du jour is the spiraling credit crisis: He flings vitriol at
bankers, saying they've been selling investors "a hapless mess
of super-complexity." The accounting profession has "disgraced
itself" with its lax standards, and so has academia. "The idea
that we need derivatives is just so much twaddle," he says. Yet
despite all this inanity and skullduggery, Munger still sees the
investing world as a place where common sense can triumph -- if
only because "it isn't so common.""

The death of the credit card economy
http://www.slate.com/id/2198942/
"The most revolutionary notion in commerce today is one of the
oldest. If you want to buy something, you may actually have to pay
for it. We are reverting from a "borrow and buy" economy to the
"cash and carry" model of our grandparents."



DOW 30 Value Screens
http://www.stingyinvestor.com/SI/strategy.shtml 

High Dividend Yield Stocks                   P/E P/B P/S P/D Yield
============================================ === === === === =====
Bank of America (BAC)                         1   5   1   5    5
Pfizer (PFE)                                  3   4   2   5    5
Citigroup (C)                                 0   5   2   5    5
AT&T (T)                                      2   4   3   5    5
Verizon (VZ)                                  2   4   4   5    5
Merck (MRK)                                   2   2   1   4    4
General Electric (GE)                         4   4   3   4    4
AIG (AIG)                                     0   5   5   4    4
JP Morgan Chase (JPM)                         4   5   2   4    4
EI DuPont (DD)                                4   3   3   4    4
More Info: http://www.stingyinvestor.com/SI/strategy/dogs.shtml 

Value Ratio Stocks                           P/E P/B P/S P/D  VR
============================================ === === === === =====
Pfizer (PFE)                                  3   4   2   5   2.0
Bank of America (BAC)                         1   5   1   5   2.2
Chevron (CVX)                                 5   4   5   4   2.6
AT&T (T)                                      2   4   3   5   2.8
General Electric (GE)                         4   4   3   4   2.9
EI DuPont (DD)                                4   3   3   4   3.2
Verizon (VZ)                                  2   4   4   5   3.3
Merck (MRK)                                   2   2   1   4   3.3
JP Morgan Chase (JPM)                         4   5   2   4   3.4
Caterpillar (CAT)                             5   2   4   3   3.9
More Info: http://www.stingyinvestor.com/SI/strategy/valueratio.shtml 

Graham Stocks                            P/E P/B P/D   G$   dG$(%)
======================================== === === === ====== ======
JP Morgan Chase (JPM)                     4   5   4   50.11  26.53
Alcoa (AA)                                5   5   2   33.24  17.47
Chevron (CVX)                             5   4   4   91.63  14.22
Bank of America (BAC)                     1   5   5   35.50  10.14
More Info: http://www.stingyinvestor.com/SI/strategy/graham.shtml 



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)                   3   4   4   1   5    5
CIBC (CM)                                0   4   5   5   5    5
National Bank of Canada (NA)             3   4   4   4   5    5
Husky Energy (HSE)                       5   2   2   3   5    5
Telus (T)                                4   4   4   5   5    5
Bank of Nova Scotia (BNS)                3   2   3   1   5    5
Royal Bank (RY)                          3   2   4   5   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
======================================== === === === === === =====
Husky Energy (HSE)                        5   2   2   3   5   1.9
Thomson (TOC)                             5   4   2   2   4   1.9
Biovail (BVF)                             1   5   3   5   5   1.9
Telus (T)                                 4   4   4   5   5   2.2
Bank of Montreal (BMO)                    3   4   4   1   5   2.2
BCE (BCE)                                 5   3   3   4   4   2.5
Petro Canada (PCA)                        5   4   5   4   3   2.7
Sun Life (SLF)                            4   5   4   1   4   2.8
Toronto Dominion Bank (TD)                4   3   3   2   5   2.9
Bank of Nova Scotia (BNS)                 3   2   3   1   5   3.0
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  124.43 1119.8
Magna Cl.A (MG.A)                         4   5   3   94.82  59.71
Petro Canada (PCA)                        5   4   3   66.60  58.31
Thomson (TOC)                             5   4   4   55.77  48.79
Canadian Tire (CTC.A)                     4   5   3   65.13  26.71
First Quantum Minerals Ltd. (FM)          5   2   2   68.80  26.17
Sun Life (SLF)                            4   5   4   49.20  23.78
Inmet Mining (IMN)                        5   3   1   68.91  18.81
Nova (NCX)                                5   3   2   32.30  18.22
Weston George (WN)                        4   5   4   52.47   9.74
Telus (T)                                 4   4   5   44.78   9.35
MDS Inc. (MDS)                            2   5   0   15.92   7.74
Canadian Pacific Rail (CP)                4   4   3   64.81   4.77
Talisman Energy (TLM)                     5   3   2   17.58   3.12
Bank of Montreal (BMO)                    3   4   5   48.03   0.92
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

Security Analysis
by Benjamin Graham & David Dodd

Graham and Dodd's Security Analysis is the investment bible for
smart investors. Regrettably the breadth of material that it
covers can be intimidating and only dedicated students are likely to
make it through its 770 pages. However, Security Analysis is
filled with Graham's practical investment philosophy and if you're
a serious investor then you should read this book.
Amazon Link: http://www.amazon.ca/exec/obidos/ASIN/0071448209/


Stock Research From Dan Hallett & Associates

The Rothery Report
http://www.rotheryreport.com/ 

The Rothery Report provides research on select deep-value stocks in
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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.