The Stingy News Weekly (06/20/2014)
| "Value stocks are about as exciting as watching grass grow. But
have you ever noticed just how much your grass grows in a week?" | |
| - Christopher Browne | |
Stingy Links
Do longer-term calculations enhance performance?
"In theory, using long-term measures makes sense, but the
evidence does not support this story. There may be other considerations
such as turnover and taxes, but in the context of the study
above, there is no benefit to using longer-term measures." [Academia]
Deflating profitability
"Gross profit scaled by book value of total assets predicts the
cross-section of average returns. Novy-Marx (2013) concludes that
it outperforms other measures of profitability such as
earnings, cash flows, and dividends. One potential explanation for the
measure's predictive ability is that its numerator - gross profit
- is a cleaner measure of economic profitability. An
alternative explanation lies in the measure's deflator. We find that net
income equals gross profit in predictive power when both measures
are constructed using consistent deflators. We then construct
an alternative measure of profitability, operating profitability,
which better matches current expenses with current revenue.
This measure exhibits a far stronger link with expected returns
than either net income or gross profit." [Academia]
Congress reluctant to cut
"Escalating recent budgetary disputes with the White House over
military spending, members of Congress signaled their hesitance
Thursday to curtail funding for the M114 Armored Combat Vehicle,
a midsize tank whose sole capability is spinning 360 degrees in
place and then exploding." [Fun]
GM Recalls
"Yet in one indirect way, Oakley tried to rouse concern. In a
draft of a service bulletin to dealers, he included the term
'stall,' a 'hot' word known to attract attention. Had it actually gone
out to car sellers, federal regulators would have most likely
seen it. But as they had with Kelley three years before, GM's
product investigators tamped down the response, striking the
language. It was one of the many occasions in which GM engineers
failed to link the ignition switch position and disabled airbags,
Valukas concluded." [Management]
DOW 30 Value Screens
| High Dividend Yield Stocks | P/E | P/B | P/S | Yield | | AT&T (T) | 5 | 5 | 4 | 5 |
| Verizon (VZ) | 5 | 1 | 4 | 5 |
| Pfizer (PFE) | 5 | 4 | 1 | 5 |
| General Electric (GE) | 1 | 5 | 3 | 5 |
| Chevron (CVX) | 4 | 5 | 5 | 5 |
| Procter & Gamble (PG) | 2 | 3 | 3 | 5 |
| McDonald's (MCD) | 3 | 1 | 2 | 4 |
| Cisco (CSCO) | 3 | 4 | 2 | 4 |
| Merck (MRK) | 1 | 3 | 1 | 4 |
| Intel (INTC) | 3 | 4 | 2 | 4 |
| Notes | More Info... |
| Low Price/Earnings Stocks | P/E | P/B | P/S | Yield | | Travelers (TRV) | 5 | 5 | 4 | 2 |
| Pfizer (PFE) | 5 | 4 | 1 | 5 |
| AT&T (T) | 5 | 5 | 4 | 5 |
| Verizon (VZ) | 5 | 1 | 4 | 5 |
| Goldman Sachs (GS) | 5 | 5 | 3 | 1 |
| IBM (IBM) | 5 | 1 | 3 | 2 |
| Chevron (CVX) | 4 | 5 | 5 | 5 |
| Exxon Mobil (XOM) | 4 | 4 | 5 | 3 |
| JP Morgan Chase (JPM) | 4 | 5 | 3 | 4 |
| UnitedHealth (UNH) | 4 | 4 | 5 | 1 |
| Notes | More Info... |
| Value Ratio Stocks | P/E | P/B | P/S | Yield | V.R. | | AT&T (T) | 5 | 5 | 4 | 5 | 1.99 |
| Verizon (VZ) | 5 | 1 | 4 | 5 | 2.57 |
| Pfizer (PFE) | 5 | 4 | 1 | 5 | 2.65 |
| Travelers (TRV) | 5 | 5 | 4 | 2 | 3.92 |
| Chevron (CVX) | 4 | 5 | 5 | 5 | 3.99 |
| IBM (IBM) | 5 | 1 | 3 | 2 | 5.13 |
| JP Morgan Chase (JPM) | 4 | 5 | 3 | 4 | 5.13 |
| Exxon Mobil (XOM) | 4 | 4 | 5 | 3 | 5.32 |
| Intel (INTC) | 3 | 4 | 2 | 4 | 5.42 |
| Cisco (CSCO) | 3 | 4 | 2 | 4 | 5.47 |
| Notes | More Info... |
| US Stock Summary | Yield | P/E | V.R. | | AT&T (T) | Y | Y | Y |
| Chevron (CVX) | Y | Y | Y |
| Pfizer (PFE) | Y | Y | Y |
| Verizon (VZ) | Y | Y | Y |
| Cisco (CSCO) | Y | | Y |
| Exxon Mobil (XOM) | | Y | Y |
| IBM (IBM) | | Y | Y |
| Intel (INTC) | Y | | Y |
| JP Morgan Chase (JPM) | | Y | Y |
| Travelers (TRV) | | Y | Y |
| General Electric (GE) | Y | | |
| Goldman Sachs (GS) | | Y | |
| McDonald's (MCD) | Y | | |
| Merck (MRK) | Y | | |
| Procter & Gamble (PG) | Y | | |
| UnitedHealth (UNH) | | Y | |
| Notes... |
S&P/TSX60 Value Screens
| High Dividend Yield Stocks | P/E | P/B | P/S | Yield | | Crescent Point (CPG) | 1 | 3 | 1 | 5 |
| Canadian Oil Sands (COS) | 4 | 2 | 2 | 5 |
| TransAlta (TA) | 0 | 4 | 4 | 5 |
| Penn West Petroleum (PWT) | 0 | 5 | 3 | 5 |
| BCE Inc. (BCE) | 3 | 1 | 3 | 5 |
| Rogers (RCI.B) | 5 | 1 | 3 | 5 |
| National Bank (NA) | 5 | 3 | 3 | 5 |
| CIBC (CM) | 5 | 3 | 3 | 5 |
| Shaw (SJR.B) | 4 | 2 | 3 | 5 |
| Enerplus (ERF) | 1 | 2 | 1 | 5 |
| Notes | More Info... |
| Low Price/Earnings Stocks | P/E | P/B | P/S | Yield | | National Bank (NA) | 5 | 3 | 3 | 5 |
| Bank of Montreal (BMO) | 5 | 4 | 3 | 5 |
| Manulife (MFC) | 5 | 5 | 3 | 3 |
| Bombardier (BBD.B) | 5 | 2 | 5 | 3 |
| CIBC (CM) | 5 | 3 | 3 | 5 |
| Brookfield (BAM.A) | 5 | 4 | 4 | 2 |
| Royal Bank (RY) | 5 | 3 | 2 | 4 |
| Bank of Nova Scotia (BNS) | 5 | 3 | 2 | 4 |
| Rogers (RCI.B) | 5 | 1 | 3 | 5 |
| Power Corp of Canada (POW) | 4 | 5 | 5 | 4 |
| Notes | More Info... |
| Value Ratio Stocks | P/E | P/B | P/S | Yield | V.R. | | Canadian Oil Sands (COS) | 4 | 2 | 2 | 5 | 2.47 |
| National Bank (NA) | 5 | 3 | 3 | 5 | 2.53 |
| Bank of Montreal (BMO) | 5 | 4 | 3 | 5 | 2.94 |
| CIBC (CM) | 5 | 3 | 3 | 5 | 3.03 |
| Rogers (RCI.B) | 5 | 1 | 3 | 5 | 3.24 |
| Royal Bank (RY) | 5 | 3 | 2 | 4 | 3.43 |
| Power Corp of Canada (POW) | 4 | 5 | 5 | 4 | 3.57 |
| Bank of Nova Scotia (BNS) | 5 | 3 | 2 | 4 | 3.62 |
| BCE Inc. (BCE) | 3 | 1 | 3 | 5 | 3.77 |
| Shaw (SJR.B) | 4 | 2 | 3 | 5 | 3.79 |
| Notes | More Info... |
| Canadian Stock Summary | Yield | P/E | V.R. | | CIBC (CM) | Y | Y | Y |
| National Bank (NA) | Y | Y | Y |
| Rogers (RCI.B) | Y | Y | Y |
| BCE Inc. (BCE) | Y | | Y |
| Bank of Montreal (BMO) | | Y | Y |
| Bank of Nova Scotia (BNS) | | Y | Y |
| Canadian Oil Sands (COS) | Y | | Y |
| Power Corp of Canada (POW) | | Y | Y |
| Royal Bank (RY) | | Y | Y |
| Shaw (SJR.B) | Y | | Y |
| Bombardier (BBD.B) | | Y | |
| Brookfield (BAM.A) | | Y | |
| Crescent Point (CPG) | Y | | |
| Enerplus (ERF) | Y | | |
| Manulife (MFC) | | Y | |
| Penn West Petroleum (PWT) | Y | | |
| TransAlta (TA) | Y | | |
| Notes... |
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