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The Stingy News Weekly (04/08/2012)


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


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Shiller's earnings yield
"Many stock market indicators are about as useful as cracked crystal balls. But Robert Shiller, a professor of economics at Yale University, advocates one forecasting tool that has demonstrated a modicum of predictive power over the long term."


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The dividend-fund dilemma
"Sooner or later, the markets always punish investors who do the right thing for the wrong reason. Some investors in dividend-oriented stock funds might end up learning that lesson the hard way."


When safe assets return
"Less debt, lower value, higher haircuts, and reduced collateral velocity: in our view, this is an ongoing and significant monetary shock."


The price of nails
"This dramatic change in productivity of nail production has the implication that nails were far more expensive in relative terms back in the 1700s. Sichel offers a number of vivid anecdotes and statistics to support this claim."


High-speed trading hurts ETFs
"Maybe someone can explain to me how a trading system where virtually all the orders are canceled helps capital markets or investors. Key liquidity measures like bid/ask spreads and depth of book depend on order information. With high-speed trading, almost all of that information is false. In short, it seems to me that high-speed trading promises liquidity, but delivers something else entirely: market manipulation."


No normal recovery
"With the U.S. economy yielding firmer data, some researchers are beginning to argue that recoveries from financial crises might not be as different from the aftermath of conventional recessions as our analysis suggests. Their case is unconvincing."


The unintended lifetime commitment
"When entering a marriage, it’s a bad sign if you start planning your exit before vows are ever exchanged. While many of life’s lessons extend to the world of investing, the exit strategy is a notable exception. Unlike in marriage, investors should spend more time contemplating their exit strategy to help avoid the unexpected liquidity trap."



DOW 30 Value Screens

High Dividend Yield StocksP/EP/BP/SYield
AT&T (T)1435
Verizon (VZ)1345
Merck (MRK)2425
Pfizer (PFE)2415
Johnson & Johnson (JNJ)2215
General Electric (GE)3435
EI DuPont (DD)4134
Procter & Gamble (PG)1324
Chevron (CVX)5554
Intel (INTC)5314
Notes | More Info...


Low Price/Earnings StocksP/EP/BP/SYield
Chevron (CVX)5554
Hewlett-Packard (HPQ)5552
JP Morgan Chase (JPM)5533
Exxon Mobil (XOM)5342
Microsoft (MSFT)5213
Intel (INTC)5314
Wal-Mart (WMT)4353
Boeing (BA)4152
American Express (AXP)4221
Caterpillar (CAT)4142
Notes | More Info...


Value Ratio StocksP/EP/BP/SYieldV.R.
Chevron (CVX)55542.51
JP Morgan Chase (JPM)55333.67
Hewlett-Packard (HPQ)55523.85
Intel (INTC)53143.91
Merck (MRK)24254.48
General Electric (GE)34354.50
Pfizer (PFE)24154.50
Microsoft (MSFT)52134.57
Exxon Mobil (XOM)53424.58
EI DuPont (DD)41344.62
Notes | More Info...


US Stock SummaryYieldP/EV.R.
Chevron (CVX)YYY
Intel (INTC)YYY
EI DuPont (DD)YY
Exxon Mobil (XOM)YY
General Electric (GE)YY
Hewlett-Packard (HPQ)YY
JP Morgan Chase (JPM)YY
Merck (MRK)YY
Microsoft (MSFT)YY
Pfizer (PFE)YY
AT&T (T)Y
American Express (AXP)Y
Boeing (BA)Y
Caterpillar (CAT)Y
Johnson & Johnson (JNJ)Y
Procter & Gamble (PG)Y
Verizon (VZ)Y
Wal-Mart (WMT)Y
Notes...



S&P/TSX60 Value Screens

High Dividend Yield StocksP/EP/BP/SYield
Enerplus (ERF)1515
TransAlta (TA)3445
Sun Life Financial (SLF)0555
Penn West Petroleum (PWT)4525
Canadian Oil Sands (COS)5225
ARC Resources (ARX)1315
BCE Inc. (BCE)3145
Husky Energy (HSE)5445
CIBC (CM)5235
Bank of Montreal (BMO)4335
Notes | More Info...


Low Price/Earnings StocksP/EP/BP/SYield
Iamgold (IMG)5423
Research In Motion (RIM)5550
Teck Resources (TCK.B)5533
Bombardier (BBD.B)5353
Canadian Oil Sands (COS)5225
Barrick Gold (ABX)5322
Agrium (AGU)5351
Husky Energy (HSE)5445
Inmet Mining (IMN)5511
Brookfield (BAM.A)5542
Notes | More Info...


Value Ratio StocksP/EP/BP/SYieldV.R.
Canadian Oil Sands (COS)52251.48
Husky Energy (HSE)54452.05
TransAlta (TA)34452.16
Penn West Petroleum (PWT)45252.21
CIBC (CM)52352.29
Bank of Montreal (BMO)43352.37
Power Corp of Canada (POW)44542.56
BCE Inc. (BCE)31452.57
Iamgold (IMG)54232.61
National Bank (NA)42343.01
Notes | More Info...


Canadian Stock SummaryYieldP/EV.R.
Canadian Oil Sands (COS)YYY
Husky Energy (HSE)YYY
BCE Inc. (BCE)YY
Bank of Montreal (BMO)YY
CIBC (CM)YY
Iamgold (IMG)YY
Penn West Petroleum (PWT)YY
TransAlta (TA)YY
ARC Resources (ARX)Y
Agrium (AGU)Y
Barrick Gold (ABX)Y
Bombardier (BBD.B)Y
Brookfield (BAM.A)Y
Enerplus (ERF)Y
Inmet Mining (IMN)Y
National Bank (NA)Y
Power Corp of Canada (POW)Y
Research In Motion (RIM)Y
Sun Life Financial (SLF)Y
Teck Resources (TCK.B)Y
Notes...



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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.

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The Graham Value Stocks letter is designed for investors who want to keep up with our sensational stock selection methods inspired by Benjamin Graham. We comb through mountains of data to highlight U.S. and Canadian stocks that we believe to be both cheap and relatively safe.

Graham Portfolio Performance
(3/2009 to 3/2012)
Simple WayDividend WayDefensive
+147%C+131%U+46%C+120%U+176%U



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Disclaimers: Consult with a qualified investment adviser before trading. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, financial advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. More...