"Investing is simple, but not easy."  - Warren Buffet


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

Help wanted: compliance officer
http://www.prefblog.com/?p=3289
"In these trying times, it will come as a great relief to many to
learn that there will be at least one new hire on Bay Street
between now and Christmas (2009). The subject of this post is a
little unusual for PrefBlog, but I.m just trying to help out and
spread the news of a vacancy. And besides, this is hilarious."

Buffett: My fix for the economy
http://money.cnn.com/2008/10/02/news/newsmakers/buffett.fortune/index.htm?postversion=2008100216
"Warren Buffett suggested Thursday that the U.S. Treasury team
with private investors to buy the distressed mortgage assets at
the center of the controversial $700 billion Wall Street bailout,
and said the price tag of the rescue plan may have to rise."

Alarm led to action
http://www.nytimes.com/2008/10/02/business/02crisis.html
"Behind the scenes, the credit markets had almost completely
frozen up. Banks were refusing to lend to other banks, and spreads
on credit default swaps on financial stocks - the price of
insuring against bankruptcy - veered into uncharted waters. Moreover,
the drain on money funds continued. By the end of business on
Wednesday, institutional investors had withdrawn more than $290
billion from money market funds. In what experts call a 'flight to
safety,' investors were taking money out of stocks and bonds
and even money market funds and buying the safest investments in
the world: Treasury bills. As a result, yields on short-term
Treasury bills dropped close to zero. That was almost unheard of."

Lehman bankruptcy gets ugly
http://www.businessweek.com/investing/insights/blog/archives/2008/10/lehman_bankrupt.html
"It's looking like Lehman, contrary to the conventional wisdom,
may have been too big to fail after all. And the fallout from the
bankruptcy may further undermine investors. confidence in the
financial system."

This economy does not compute
http://www.nytimes.com/2008/10/01/opinion/01buchanan.html
"Certainly, markets have internal dynamics. They're
self-propelling systems driven in large part by what investors believe other
investors believe; participants trade on rumors and gossip, on
fears and expectations, and traders speak for good reason of the
market's optimism or pessimism. It's these internal dynamics
that make it possible for billions to evaporate from portfolios in
a few short months just because people suddenly begin
remembering that housing values do not always go up. Really understanding
what's going on means going beyond equilibrium thinking and
getting some insight into the underlying ecology of beliefs and
expectations, perceptions and misperceptions, that drive market
swings."

Buffett buys GE preferred
http://www.bloomberg.com/apps/news?pid=20601087&sid=a2cjYB6hlDO4&refer=home
"General Electric Co. plans to offer $12 billion in common shares
and billionaire investor Warren Buffett's Berkshire Hathaway
Inc. will buy $3 billion stake of preferred shares."

Cities are cutting back projects
http://www.nytimes.com/2008/10/01/business/01muni.html?_r=1&dbk&oref=slogin
"Cities, states and other local governments have been effectively
shut out of the bond markets for the last two weeks, raising
the cost of day-to-day operations, threatening longer-term
projects and dampening a broad source of jobs and stability at a time
when other parts of the economy are weakening."

A contrarian gets the last laugh
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20081001/RBANKSWINNERS01
"Vito Maida says he's lucky. But he could just as easily say, "I
told you so." More than four years ago, with stock prices
roaring upward and a global real estate boom gaining pace, the Toronto
money manager sat down to pen his thoughts on the markets, and
realized that his views were out of step with the rest of the
financial world."

Canada may face housing bust: Shiller
http://www.financialpost.com/news/story.html?id=853094
"The Canadian housing market could face a similar housing bust to
the United States, particularly in more bubbly markets as
Vancouver and Calgary, said Robert Shiller, the Yale University
professor who predicted both the 1990s stock market boom and bust and
the US housing slump."

U.S. home prices declined 16.3% in July
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEyKpTpk90C0&refer=home
"The S&P/Case-Shiller home-price index dropped 16.3 percent from
a year earlier, more than forecast, after a 15.9 percent decline
in June."

Corporate bonds worse than equities
http://bespokeinvest.typepad.com/bespoke/2008/09/corporate-bonds.html
"Even though equity markets are down nearly 7% today, the
corporate bond market is even worse. Below we highlight a price chart
of an ETF that tracks an index of investment grade corporate
bonds (LQD). As shown, the ETF is down nearly 10% today!"

The 50-100 year storm has arrived
http://www.fairfax.ca/Assets/Downloads/Scotia%20Institutional%20Investors%20Sept%202008.pdf
Keen slides from a Fairfax presentation.

U.S. House rejects rescue plan
http://www.bloomberg.com/apps/news?pid=20601087&sid=aovs_9KFtWgA&refer=home
"The financial-rescue plan intended to restore confidence in the
U.S. banking system collapsed in partisan wrangling as the House
of Representatives voted down the proposal backed by the Bush
administration and congressional leaders of both parties."

Lehman's '100% principal protection' means pennies
http://www.bloomberg.com/apps/news?pid=20601109&sid=aPQXoCH.fIa0&refer=home
"A brochure pitching $1.84 million of notes sold by Lehman
Brothers Holdings Inc. in August, a month before the firm filed for
bankruptcy, promised '100 percent principal protection.' Buyers
had 'uncapped appreciation potential' pegged to gains in the
Standard & Poor's 500 Index, the brochure said. In the worst case,
they would get back their $1,000-per-note investment in three
years. Only the last in a list of 15 risk factors mentioned the
biggest danger: 'An investment in the notes will be subject to the
credit risk of Lehman Brothers.' Lehman's Sept. 15 bankruptcy
leaves holders of the notes waiting in line with other unsecured
creditors for what's left of their money."

Citigroup to buy Wachovia banking assets
http://money.cnn.com/2008/09/29/news/companies/wachovia_citigroup/index.htm?postversion=2008092908
"Citigroup will acquire Wachovia's massive deposit network, as
well as over $300 billion worth of Wachovia's loan portfolio and
the company's debt. Citigroup said it will absorb up to $42
billion of losses on those loans, while the Federal Deposit Insurance
Corporation will be on the hook for anything beyond that."




Tip Sheet
http://www.stingyinvestor.com/SI/strategy/tipsheet.shtml

Cash not credit
http://www.ndir.com/SI/strategy/tipsheet/10-05-2008-Cash-not-credit.shtml
Today we're looking for debt-light Canadian stocks trading at
low price-to-earnings ratios.

High Yielding Smoke Stocks
http://www.ndir.com/SI/strategy/tipsheet/09-29-2008-High-Yielding-Smoke-Stocks.shtml
Survival is easy when you don't need to borrow money. It is even
easier when you're a cash generating machine like a cigarette
company. Due to the current panic you can get yields north of 6% from
big tobacco. Can these stock go down? Sure thing. Even cash generators
can decline in a panic. But some are starting to look quite
interesting.




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   4   3   5   5    5
Bank of Montreal (BMO)                   3   5   2   1   5    5
CIBC (CM)                                0   3   1   4   5    5
National Bank of Canada (NA)             2   4   2   4   5    5
Husky Energy (HSE)                       4   2   3   3   5    5
Telus (T)                                4   3   4   5   5    5
Teck Cominco Limited (TCK.B)             5   4   3   3   5    5
BCE (BCE)                                4   3   3   4   5    5
Bank of Nova Scotia (BNS)                3   2   1   1   5    5
Toronto Dominion Bank (TD)               3   3   2   2   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
======================================== === === === === === =====
First Quantum Minerals Ltd. (FM)          5   4   4   4   3   1.4
Teck Cominco Limited (TCK.B)              5   4   3   3   5   1.4
Biovail (BVF)                             1   4   3   5   5   1.5
Husky Energy (HSE)                        4   2   3   3   5   1.6
Petro Canada (PCA)                        5   5   5   4   3   1.6
Bank of Montreal (BMO)                    3   5   2   1   5   1.7
Thomson (TOC)                             5   0   0   0   4   1.9
BCE (BCE)                                 4   3   3   4   5   1.9
Telus (T)                                 4   3   4   5   5   2.0
Sun Life (SLF)                            4   5   4   1   4   2.3
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  185.95 2602.8
First Quantum Minerals Ltd. (FM)          5   4   3   81.96 136.88
Petro Canada (PCA)                        5   5   3   74.72 131.70
Magna Cl.A (MG.A)                         4   5   4   99.82 115.50
Inmet Mining (IMN)                        5   4   1   75.23  83.58
Teck Cominco Limited (TCK.B)              5   4   5   39.68  71.94
Nova (NCX)                                5   4   2   33.91  64.86
Talisman Energy (TLM)                     5   4   2   19.24  45.76
Sun Life (SLF)                            4   5   4   52.22  44.97
Agrium (AGU)                              5   3   1   63.10  44.33
Canadian Tire (CTC.A)                     4   4   2   67.00  39.76
Nexen Inc. (NXY)                          5   3   1   28.72  36.11
Canadian Pacific Rail (CP)                4   4   3   65.76  33.01
BCE (BCE)                                 4   3   5   45.26  29.68
Bank of Montreal (BMO)                    3   5   5   54.39  27.99
Telus (T)                                 4   3   5   45.32  14.69
Toronto Dominion Bank (TD)                3   3   4   67.13  12.96
Weston George (WN)                        3   4   3   59.06   5.47
Husky Energy (HSE)                        4   2   5   41.25   5.00
Yamana Gold Inc. (YRI)                    1   5   2    7.81   4.13
National Bank of Canada (NA)              2   4   5   49.82   2.80
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

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 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.