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The Stingy News Weekly (04/22/2012)


"To me, it's obvious that the winner has to bet very selectively. It's been obvious to me since very early in life. I don't know why it's not obvious to very many other people."
- Charlie Munger


New @ StingyInvestor

Dividend stocks aren't fail-safe
"Dividend investing has many sterling qualities but protection against downturns is not one of them. With few exceptions, dividend stocks fall just as hard as other stocks when the market crashes."


Stingy Links

Exercise to a better brain
"The value of mental-training games may be speculative, as Dan Hurley writes in his article on the quest to make ourselves smarter, but there is another, easy-to-achieve, scientifically proven way to make yourself smarter. Go for a walk or a swim. For more than a decade, neuroscientists and physiologists have been gathering evidence of the beneficial relationship between exercise and brainpower."


Modern portfolio theory is bunk
"A basic tenet of modern portfolio theory is that investors who are willing to take on greater risk can expect a greater reward. But a new study released this week turns that belief on its head, claiming that less risky stocks, as measured by volatility, actually outperform more risky, or more volatile, stocks."


Owning too much real estate
"In the past, young families first purchased a starter home, lived in it for a few years and then sold it and upgraded to a bigger home to accommodate a growing family. These days, many families appear to opt to rent out their starter home when upgrading to a larger property."


Bias in government forecasts
"Clearly, part of the blame lies with voters who don’t want to hear that budget discipline means cutting programs that matter to them, and with politicians who tell voters only what they want to hear. But another factor has attracted insufficient notice: systematically over-optimistic official forecasts."


Doctored papers
"Dr. Fang became curious how far the rot extended. To find out, he teamed up with a fellow editor at the journal, Dr. Arturo Casadevall of the Albert Einstein College of Medicine in New York. And before long they reached a troubling conclusion: not only that retractions were rising at an alarming rate, but that retractions were just a manifestation of a much more profound problem — “a symptom of a dysfunctional scientific climate,” as Dr. Fang put it. Dr. Casadevall, now editor in chief of the journal mBio, said he feared that science had turned into a winner-take-all game with perverse incentives that lead scientists to cut corners and, in some cases, commit acts of misconduct."


Buffett battles cancer
"This is to let you know that I have been diagnosed with stage I prostate cancer. The good news is that I’ve been told by my doctors that my condition is not remotely lifethreatening or even debilitating in any meaningful way. I received my diagnosis last Wednesday. I then had a CAT scan and a bone scan on Thursday, followed by an MRI today. These tests showed no incidence of cancer elsewhere in my body."



DOW 30 Value Screens

High Dividend Yield StocksP/EP/BP/SYield
AT&T (T)1435
Verizon (VZ)1245
Merck (MRK)2425
Pfizer (PFE)2415
Johnson & Johnson (JNJ)3315
General Electric (GE)3435
Procter & Gamble (PG)1324
Chevron (CVX)5554
EI DuPont (DD)4134
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)5352
Intel (INTC)5314
Microsoft (MSFT)5213
Boeing (BA)4152
Wal-Mart (WMT)4353
American Express (AXP)4221
EI DuPont (DD)4134
Notes | More Info...


Value Ratio StocksP/EP/BP/SYieldV.R.
Chevron (CVX)55542.38
JP Morgan Chase (JPM)55333.39
Intel (INTC)53143.89
General Electric (GE)34354.35
Merck (MRK)24254.36
Hewlett-Packard (HPQ)55524.51
Microsoft (MSFT)52134.52
Pfizer (PFE)24154.55
Exxon Mobil (XOM)53524.60
EI DuPont (DD)41344.61
Notes | More Info...


US Stock SummaryYieldP/EV.R.
Chevron (CVX)YYY
EI DuPont (DD)YYY
Intel (INTC)YYY
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
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)1525
TransAlta (TA)3445
Penn West Petroleum (PWT)4525
ARC Resources (ARX)2315
Sun Life Financial (SLF)0555
Canadian Oil Sands (COS)5225
BCE Inc. (BCE)3145
Husky Energy (HSE)5445
Shaw (SJR.B)3235
CIBC (CM)5235
Notes | More Info...


Low Price/Earnings StocksP/EP/BP/SYield
Iamgold (IMG)5422
Research In Motion (RIM)5550
Teck Resources (TCK.B)5533
Canadian Oil Sands (COS)5225
Barrick Gold (ABX)5322
Agrium (AGU)5351
CIBC (CM)5235
Husky Energy (HSE)5445
Inmet Mining (IMN)5511
Bank of Montreal (BMO)5335
Notes | More Info...


Value Ratio StocksP/EP/BP/SYieldV.R.
Canadian Oil Sands (COS)52251.51
TransAlta (TA)34451.81
Penn West Petroleum (PWT)45251.88
Husky Energy (HSE)54452.08
CIBC (CM)52352.09
Bank of Montreal (BMO)53352.24
Enerplus (ERF)15252.35
BCE Inc. (BCE)31452.56
Power Corp of Canada (POW)44542.69
Iamgold (IMG)54222.70
Notes | More Info...


Canadian Stock SummaryYieldP/EV.R.
CIBC (CM)YYY
Canadian Oil Sands (COS)YYY
Husky Energy (HSE)YYY
BCE Inc. (BCE)YY
Bank of Montreal (BMO)YY
Enerplus (ERF)YY
Iamgold (IMG)YY
Penn West Petroleum (PWT)YY
TransAlta (TA)YY
ARC Resources (ARX)Y
Agrium (AGU)Y
Barrick Gold (ABX)Y
Inmet Mining (IMN)Y
Power Corp of Canada (POW)Y
Research In Motion (RIM)Y
Shaw (SJR.B)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.

Rothery Report Performance
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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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