Someone writes to ask if I'm still analyzing companies for fun and profit. Yes, but not as methodically as last year; many of last year's short list candidates have fallen into buying range and most of 2006's "investing activity" has focused more on shovelling money into previously analyzed situations than on finding new ones.

The same writer wonders, rather presumptuously in my view, if I'm finding "compelling value" anywhere on the TSE. Yup. Though I sense what is being laboriously fished for is a stock tip. I don't give these; anyone attempting to solicit one from a self-taught deep value investor pretty much deserves what he or she gets.

Just for fun, though, here's a quiz. Five midsize TSE-listed companies below. One's a bargain; three might or might not be; one's a train wreck leaking toxic chemicals into the local water supply. Which is which? Support your answer with a few pieces of evidence, pro or con. All readers, including the original writer and all members of the Canadian art world, are invited to play. All that is required is a passing grade in Math 12, and basic common sense. I'll post the most entertaining replies and analysis in a week. Disclaimer: I do not own and am not currently buying any of the five.

The List:

1. Norbord, Inc. makes wood-based panels: particleboard, MDF, plywood, etc.

2. Menu Foods Limited Partnership and its subsidiaries Menu Foods Limited and Menu Foods Operating Limited Partnership manufacture wet pet food products under private label for retailers and mass merchandisers. The Incredible Talking Cats unreservedly recommend Menu's products; the stock may or may not be as enticing as the product line-up.

3. Peyto Energy Trust explores for oil and natural gas and acquires and holds interests in oil and natural gas properties.

4. E-L Financial Corporation (no website) is a holding company, the operating entities of which are engaged in the underwriting of all types of insurance.

5. The North West Company Inc. operates small-scale retail stores in remote communities and larger regional centres under the Northern banner and other banners. Stores offer perishable and non-perishable foods, general household merchandise, small watercraft, snowmobiles, and services such as automated teller machines, gasoline sales, and catalogue shopping. The Company also distributes full-line produce and fresh meats in Manitoba and northwestern Ontario, and engages in fur marketing and the marketing of Inuit art.
- posted by cjb @ 6:35 PM