The Stingy News Weekly (04/17/2011)
| "There are two times in a man's life when he should not speculate
- when he can't afford it and when he can." | |
| - Mark Twain | |
Stingy Links
Top Marginal Tax Rates 1916-2010
"Over the years, changing the amount of taxes people pay was
accomplished not just by changing rates but by changing the income
limits of the tax brackets. Just looking at the top rates does
not give the whole picture about who is paying taxes. Before the
1986 tax reform, the income tax had 15 brackets. In the 1930s,
there were more than 50. The Wealth Tax Act of 1935, applied the
top rate to income over $5 million and had only a single
taxpayer: John D. Rockefeller, Jr. As the number of tax brackets
decrease, the the top rate was applied to more people over the decades.
Since 1987 the income tax brackets were combined so now more
than a million people “qualify” for the top marginal rate."
State of war
"The funding crisis in public-sector pensions is, in large part,
the result of post-dated cheques written by politicians in the
past. As Roger Lowenstein, a journalist, recounts in his book
“While America Aged”, there has been a “devil’s pact” in which
politicians granted benefits to unions without funding those
promises properly. A classic illustration comes from San Diego,
California. In 2002 the funding ratio (the proportion of pension
liabilities covered by assets) of the city’s pension scheme dropped
close to 82.3%, a level that should have triggered a rise in the
contribution to make up the shortfall. That would have required a
tax increase. To avoid this, the city did a deal with the
unions whereby it would raise future benefits in return for not
having to lift contributions. In other words, faced with a hole in
the fund, the authorities dug deeper."
Pick a number, any number
"Unfunded schemes cannot use the assumed rate of return on their
assets because they do not have any. One possible measure would
be the growth rate of the economy, since tax revenues (which
will fund the pensions) should rise in line with GDP. The problem
lies in estimating the future growth rate. In 1990 the Japanese
government would have forecast a much higher growth rate than it
actually achieved. The financial economists say that the
discount rate should be based on the inflation-linked government bond
yield, because British public-sector pensions are
inflation-protected. As index-linked yields are currently very low (below 1% in
real terms), that makes the British shortfall on public-sector
pension funding look very large, at around £1 trillion, or 81%
of GDP."
End of Month Anomaly
"Calendar effects in stock returns have been prominent in the
finance literature since the 1970s. It's easy to pull in a time
series and look at things like January, Monday, or beginning of
month. Josef Lakonishok and Robert Haugen wrote a book, The
Incredible January Effect, in 1988. Alas, most of this effect was in
smaller stocks that were hard to trade, and while it may have
existed, it no longer does."
DOW 30 Value Screens
| High Dividend Yield Stocks | P/E | P/B | P/S | P/D | Yield | | AT&T (T) | 5 | 5 | 3 | 5 | 5 |
| Verizon (VZ) | 1 | 3 | 5 | 5 | 5 |
| Merck (MRK) | 1 | 4 | 2 | 5 | 5 |
| Pfizer (PFE) | 1 | 4 | 2 | 5 | 5 |
| Intel (INTC) | 5 | 3 | 1 | 5 | 5 |
| Johnson & Johnson (JNJ) | 4 | 2 | 1 | 5 | 5 |
| Kraft (KFT) | 3 | 5 | 4 | 4 | 4 |
| Procter & Gamble (PG) | 2 | 3 | 2 | 4 | 4 |
| McDonald's (MCD) | 2 | 1 | 1 | 4 | 4 |
| EI DuPont (DD) | 2 | 1 | 3 | 4 | 4 |
| Notes | More Info... |
| Value Ratio Stocks | P/E | P/B | P/S | P/D | VR | | AT&T (T) | 5 | 5 | 3 | 5 | 1.61 |
| Intel (INTC) | 5 | 3 | 1 | 5 | 2.66 |
| Johnson & Johnson (JNJ) | 4 | 2 | 1 | 5 | 3.52 |
| Travelers (TRV) | 5 | 5 | 4 | 3 | 3.77 |
| Kraft (KFT) | 3 | 5 | 4 | 4 | 3.97 |
| Chevron (CVX) | 4 | 4 | 4 | 3 | 4.15 |
| Microsoft (MSFT) | 4 | 2 | 1 | 3 | 4.33 |
| Wal-Mart (WMT) | 4 | 3 | 5 | 3 | 4.44 |
| JP Morgan Chase (JPM) | 5 | 5 | 3 | 2 | 4.53 |
| Coca-Cola (KO) | 4 | 1 | 1 | 4 | 4.80 |
| Notes | More Info... |
| Graham-Lite Stocks | P/E | P/B | P/D | G$ | dG$(%) | | Travelers (TRV) | 5 | 5 | 3 | 93.41 | 56.21 |
| JP Morgan Chase (JPM) | 5 | 5 | 2 | 66.13 | 47.32 |
| AT&T (T) | 5 | 5 | 5 | 37.98 | 23.90 |
| Intel (INTC) | 5 | 3 | 5 | 20.24 | 2.46 |
| Hewlett-Packard (HPQ) | 5 | 3 | 1 | 40.83 | 1.42 |
| Kraft (KFT) | 3 | 5 | 4 | 33.43 | 0.21 |
| Chevron (CVX) | 4 | 4 | 3 | 106.43 | 0.18 |
| Notes | More Info... |
| Top US Stocks | Yield | V.R. | Graham | | AT&T (T) | Y | Y | Y |
| Intel (INTC) | Y | Y | Y |
| Kraft (KFT) | Y | Y | Y |
| Chevron (CVX) | | Y | Y |
| JP Morgan Chase (JPM) | | Y | Y |
| Johnson & Johnson (JNJ) | Y | Y | |
| Travelers (TRV) | | Y | Y |
| Coca-Cola (KO) | | Y | |
| EI DuPont (DD) | Y | | |
| Hewlett-Packard (HPQ) | | | Y |
| McDonald's (MCD) | Y | | |
| Merck (MRK) | Y | | |
| Microsoft (MSFT) | | Y | |
| Pfizer (PFE) | Y | | |
| Procter & Gamble (PG) | Y | | |
| Verizon (VZ) | Y | | |
| Wal-Mart (WMT) | | Y | |
| Notes... |
S&P/TSX60 Value Screens
| High Dividend Yield Stocks | P/E | P/B | P/S | P/D | Yield | | Transalta (TA) | 1 | 4 | 4 | 5 | 5 |
| BCE (BCE) | 5 | 3 | 4 | 5 | 5 |
| Sun Life (SLF) | 5 | 5 | 5 | 5 | 5 |
| Shaw Comm Cl.B (SJR.B) | 2 | 1 | 3 | 5 | 5 |
| Bank of Montreal (BMO) | 5 | 4 | 3 | 5 | 5 |
| Husky Energy (HSE) | 2 | 4 | 4 | 5 | 5 |
| Telus (T) | 4 | 3 | 4 | 5 | 5 |
| CIBC (CM) | 4 | 2 | 3 | 5 | 5 |
| TransCanada (TRP) | 2 | 4 | 2 | 5 | 5 |
| Power Corp (POW) | 4 | 4 | 5 | 5 | 5 |
| Notes | More Info... |
| Value Ratio Stocks | P/E | P/B | P/S | P/D | VR | | Sun Life (SLF) | 5 | 5 | 5 | 5 | 2.24 |
| BCE (BCE) | 5 | 3 | 4 | 5 | 2.24 |
| Bank of Montreal (BMO) | 5 | 4 | 3 | 5 | 2.79 |
| CIBC (CM) | 4 | 2 | 3 | 5 | 3.15 |
| Rogers Comm Cl.B (RCI.B) | 4 | 1 | 4 | 4 | 3.29 |
| National Bank (NA) | 5 | 3 | 3 | 4 | 3.38 |
| Telus (T) | 4 | 3 | 4 | 5 | 3.56 |
| Power Corp (POW) | 4 | 4 | 5 | 5 | 3.64 |
| Bank of Nova Scotia (BNS) | 4 | 2 | 2 | 4 | 3.87 |
| Transalta (TA) | 1 | 4 | 4 | 5 | 4.06 |
| Notes | More Info... |
| Graham-Lite Stocks | P/E | P/B | P/D | G$ | dG$(%) | | Sun Life (SLF) | 5 | 5 | 5 | 44.57 | 50.83 |
| Nexen (NXY) | 5 | 5 | 1 | 29.23 | 31.08 |
| Canadian Tire (CTC.A) | 5 | 5 | 3 | 79.17 | 28.43 |
| Magna (MG) | 5 | 5 | 3 | 54.86 | 24.94 |
| Inmet Mining (IMN) | 5 | 4 | 1 | 78.04 | 17.15 |
| Brookfield A.M. (BAM.A) | 4 | 5 | 2 | 32.75 | 8.26 |
| Manulife (MFC) | 3 | 5 | 4 | 16.94 | 3.01 |
| Encana (ECA) | 3 | 5 | 4 | 32.31 | 2.09 |
| Kinross Gold (K) | 3 | 5 | 1 | 15.34 | 1.99 |
| Power Corp (POW) | 4 | 4 | 5 | 28.66 | 1.78 |
| Notes | More Info... |
| Top Canadian Stocks | Yield | V.R. | Graham | | Power Corp (POW) | Y | Y | Y |
| Sun Life (SLF) | Y | Y | Y |
| BCE (BCE) | Y | Y | |
| Bank of Montreal (BMO) | Y | Y | |
| CIBC (CM) | Y | Y | |
| Telus (T) | Y | Y | |
| Transalta (TA) | Y | Y | |
| Bank of Nova Scotia (BNS) | | Y | |
| Brookfield A.M. (BAM.A) | | | Y |
| Canadian Tire (CTC.A) | | | Y |
| Encana (ECA) | | | Y |
| Husky Energy (HSE) | Y | | |
| Inmet Mining (IMN) | | | Y |
| Kinross Gold (K) | | | Y |
| Magna (MG) | | | Y |
| Manulife (MFC) | | | Y |
| National Bank (NA) | | Y | |
| Nexen (NXY) | | | Y |
| Rogers Comm Cl.B (RCI.B) | | Y | |
| Shaw Comm Cl.B (SJR.B) | Y | | |
| TransCanada (TRP) | Y | | |
| Notes... |
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