August 14, 2016

On Friday, the S&P 500 was down 0.1% and Toronto was down 0.3%.

Element Financial was down 3.5%. I have been reading its annual report and its latest quarterly report. I find management to be very aggressive about adding back things in adjusted earnings. They do that to a point where I definitely would not trust them. They also seem overly concerned with the stock price and are splitting the company in two to try to raise the value that way. It may work. This is a complicated company and at best I would consider it to be a speculative pick. I plan to crunch the numbers and update the report in the next few days.

Oil is at $44.70 which should be positive for our Alberta-based companies.

If I had U.S. dollars available I would add to my Toll Brothers position ahead of its earnings which come out on the 23rd. My understanding is that they will report a good profit gain based on houses they contracted to build last year. That should be baked in unless there are unusual expenses. On top of that I expect that their contracted sales should have been up in the quarter as well, as the U.S. economy has been improving.