April 13, 2016

On Wednesday, the S&P 500 rose by 1.0% and Toronto by 0.7%.

Bank of America was up by 3.9% and Toll Brothers by 3.3%.

Some weak companies also rose. Bombardier was up 5.94% and Liquor Stores N.A. was up by 4.8%.

I have been watching impatiently for Melcor to start buying back some shares as it basically more or less promised in a March 29 press release. To date, it has reported no such buy backs. I now understand that it gave its broker instructions to buy but may have set too low a price. It would be fine if the company wants to conserve cash and not do buy backs. But I don’t think it is fine to announce a Normal Course Issuer bid and then not follow through.

To add insult to injury, an insider sold 4400 shares at $14.60. This was on Friday of last week. It came after exercising options at $12.76. Possibly the options were expiring, in which case the sale is understandable.