The Stingy News Weekly (11/16/01)
The Markets This Week
DOW 30: 9,866.99 +2.70% to a P/E of 27.3
TSE 300: 7,315.30 +1.46% with a negative P/E
The Value View
Dow at a P/E of 20: 7,229 (-26.7%) Poor Value
Dow at a P/E of 15: 5,421 (-45.1%) Fair Value
Dow at a P/E of 10: 3,614 (-63.4%) Good Value
A Stingy Contest
Figure out how much the XYZ company is worth for a chance to win a copy of Jim Otar's new book "High Expectations and False Dreams: One Hundred Years of Stock Market History Applied to Retirement Planning." http://www.stingyinvestor.com/SI/store/freebook.shtml
Make low rates work for you
"Norman Rothery, president of StingyInvestor.com, suggests those with heavy credit-card and other consumer debt consider a consolidation loan. 'Here, credit-card balances are transferred to a lower-rate bank loan. ING Direct lists general loans at 6.5% plus, depending on the applicant's financial position. This sort of thing may well require the cutting up of credit cards,' a good idea anyway"
The virtues of value investing
"A classic, according to Mark Twain, is a book that people praise and don't read. Let's be honest: For most of us, Security Analysis, the 1934 classic on value investing by Benjamin Graham and David Dodd, falls into that category." -- What!?!? Security Analysis is one of the best investment books that I've ever read. Ask Santa for a copy this Christmas and you won't be disappointed.
The road less travelled
"As they begin their journey, investors are faced with an immediate fork in the road-the choice between an active and a passive management strategy. Given the substantial body of evidence it seems clear that passive investing is the strategy most likely to deliver superior results."
Yes, we have no profits
"The rise and fall of Chiquita Banana: How a great American brand lost its way. "
Just how risky is your portfolio?
"Be honest: How much can you really stand to lose? 5%? 20%? Here are some tools to help assess the risk you can afford to take--and how much you're already taking."
When is tax evasion unethical?
"A few years ago the Roman Catholic Church issued a revised catechism that categorizes tax evasion as a sin. Part I of this article explores the arguments that could be used to support the view that tax evasion is a sin, or is unethical. Part II presents arguments to support the position that there is nothing sinful or ethically wrong with tax evasion. The article concludes that the arguments offered to support the view that tax evasion is sinful or unethical do not hold up under analysis, and suggests that it is the tax collectors who might be guilty of sin, since they participate in the taking of property without the owner's consent."
Canadian Business: We rank the discount brokers
"What a difference a year makes. When we last sat down to do our annual in-depth analysis of Canada's discount brokerage industry, we were all still merrily riding the longest bull market in history. Discount brokers were all the rage and, besides, it sure didn't take an expert to make a fortune. These days, though, with the markets off by as much as 50% from this time last year, we decided to adjust our research methods to reflect the new realities."
Don't sell 'em short
"Economists used to think investors were always coldly rational. Now they know that's wrong. And research is shedding light on how strangely markets can behave. In what follows, I'll explain several fascinating studies that turn conventional ideas about short selling upside down."
It's time that a bank invests in its people
CIBC to cut its workforce by 2,000 in an effort to disprove its own advertizing.
The trivia questions this week are:
The answers for last week's trivia questions are:
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