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The Stingy News Weekly (10/14/2012)


"In the financial world it tends to be misleading to state, "There is no free lunch." Rather the more meaningful comment is, "Somebody has to pay for lunch.""
- Martin Whitman


New @ StingyInvestor

What would Buffett buy?
"Warren Buffett, the Oracle of Omaha, is the world's most successful value investor. Here's how you can follow his strategies to find your own bargain stocks."


Low volatility value
"Removing the most volatile stocks from the low-P/B portfolio boosted returns by nearly a percentage point annually and reduced volatility by almost two percentage points. As a result, value and low-volatility work well together."


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When cheap funds cost too much
"Exchange-traded funds have quickly become one of the cheapest and simplest investing tools in the world. They also are the raw material for an increasingly popular but potentially expensive and confusing way to invest."


You do the math
"One of the nice things about dividends is that they're taxed at a lower rate than interest or other income. Most people know that. What they may not know is that, depending on the province, it's possible for an individual with no other sources of income to earn nearly $50,000 in dividends without paying any tax at all."


The Halloween Indicator
"We use all available stock market indices for all 108 stock markets and for all time periods to study the 'Halloween indicator' or 'Sell-in-May' effect. In total 55,425 monthly observations over 319 years show winter returns - November through April - are 4.52% (t-value 9.69) higher than summer returns. The effect is increasing in strength: The average difference between November-April and May-October returns is 6.25% over the past 50 years. A Sell-in-May trading strategy beats the market more than 80% of the time over 5 year horizons. The data allows us to address a number of (methodological) issues that have been raised with respect to the effect."


Half of the facts you know are probably wrong
"The field of scientometrics - the science of measuring and analyzing science - took off in 1947 when mathematician Derek J. de Solla Price was asked to store a complete set of the Philosophical Transactions of the Royal Society temporarily in his house. He stacked them in order and he noticed that the height of the stacks fit an exponential curve. Price started to analyze all sorts of other kinds of scientific data and concluded in 1960 that scientific knowledge had been growing steadily at a rate of 4.7 percent annually since the 17th century. The upshot was that scientific data was doubling every 15 years."



DOW 30 Value Screens

High Dividend Yield StocksP/EP/BP/SYield
AT&T (T)1435
Verizon (VZ)1245
Intel (INTC)5435
Merck (MRK)1315
Hewlett-Packard (HPQ)0555
Johnson & Johnson (JNJ)1315
EI DuPont (DD)3144
Pfizer (PFE)2314
McDonald's (MCD)2114
Procter & Gamble (PG)2324
Notes | More Info...


Low Price/Earnings StocksP/EP/BP/SYield
Chevron (CVX)5544
Intel (INTC)5435
Caterpillar (CAT)5252
Exxon Mobil (XOM)5342
JP Morgan Chase (JPM)5533
Bank of America (BAC)4541
UnitedHealth (UNH)4451
Cisco (CSCO)4423
Travelers (TRV)4543
Boeing (BA)4152
Notes | More Info...


Value Ratio StocksP/EP/BP/SYieldV.R.
Intel (INTC)54352.17
Chevron (CVX)55442.61
JP Morgan Chase (JPM)55333.32
Caterpillar (CAT)52523.70
EI DuPont (DD)31443.76
Exxon Mobil (XOM)53423.84
Cisco (CSCO)44233.98
Microsoft (MSFT)32144.56
Travelers (TRV)45434.58
Boeing (BA)41524.97
Notes | More Info...


US Stock SummaryYieldP/EV.R.
Intel (INTC)YYY
Boeing (BA)YY
Caterpillar (CAT)YY
Chevron (CVX)YY
Cisco (CSCO)YY
EI DuPont (DD)YY
Exxon Mobil (XOM)YY
JP Morgan Chase (JPM)YY
Travelers (TRV)YY
AT&T (T)Y
Bank of America (BAC)Y
Hewlett-Packard (HPQ)Y
Johnson & Johnson (JNJ)Y
McDonald's (MCD)Y
Merck (MRK)Y
Microsoft (MSFT)Y
Pfizer (PFE)Y
Procter & Gamble (PG)Y
UnitedHealth (UNH)Y
Verizon (VZ)Y
Notes...



S&P/TSX60 Value Screens

High Dividend Yield StocksP/EP/BP/SYield
Penn West Petroleum (PWT)2535
TransAlta (TA)0345
Canadian Oil Sands (COS)4225
Enerplus (ERF)0525
Sun Life Financial (SLF)0555
BCE Inc. (BCE)4135
ARC Resources (ARX)1215
Power Corp of Canada (POW)5555
Bank of Montreal (BMO)5435
CIBC (CM)5235
Notes | More Info...


Low Price/Earnings StocksP/EP/BP/SYield
First Quantum (FM)5311
National Bank (NA)5334
Bombardier (BBD.B)5153
Teck Resources (TCK.B)5543
Magna (MG)5553
Barrick Gold (ABX)5423
Inmet Mining (IMN)5521
CIBC (CM)5235
Bank of Montreal (BMO)5435
Power Corp of Canada (POW)5555
Notes | More Info...


Value Ratio StocksP/EP/BP/SYieldV.R.
Canadian Oil Sands (COS)42251.65
National Bank (NA)53341.98
CIBC (CM)52352.06
Penn West Petroleum (PWT)25352.09
Bank of Montreal (BMO)54352.12
Power Corp of Canada (POW)55552.12
Bank of Nova Scotia (BNS)43342.48
BCE Inc. (BCE)41352.55
Shaw (SJR.B)32352.83
Royal Bank (RY)42242.92
Notes | More Info...


Canadian Stock SummaryYieldP/EV.R.
Bank of Montreal (BMO)YYY
CIBC (CM)YYY
Power Corp of Canada (POW)YYY
BCE Inc. (BCE)YY
Canadian Oil Sands (COS)YY
National Bank (NA)YY
Penn West Petroleum (PWT)YY
ARC Resources (ARX)Y
Bank of Nova Scotia (BNS)Y
Barrick Gold (ABX)Y
Bombardier (BBD.B)Y
Enerplus (ERF)Y
First Quantum (FM)Y
Inmet Mining (IMN)Y
Magna (MG)Y
Royal Bank (RY)Y
Shaw (SJR.B)Y
Sun Life Financial (SLF)Y
Teck Resources (TCK.B)Y
TransAlta (TA)Y
Notes...



The Rothery Report
(Learn More | Subscribe)

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
(03/31/2001 to 06/30/2012)
Average Capital Gain
38.8%



Graham Value Stocks
(Learn More)

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
(6/2009 to 6/2012)
Simple WayDividend WayDefensive
+26%C+35%U+22%C+41%U+63%U



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