February 7, 2013 Comments

I’m featured in the business section of the Edmonton Journal tomorrow.


Our stock picks have ended out the week in decent shape.

As always the signals from the economy are mixed. The U.S. economy continues to recover.

Canadian multi-family housing starts dropped a lot in December. Single family housing starts were also a bit lower I understand. In general house prices in Canada appear to be slipping a bit.

In Alberta things seem strong. But we do have the issue of a low oil and gas prices and eventually that couold cool the economy in Alberta. So Melcor faces that risk. On the other hand I expect Melcor to release good Q4 earnings (around March 6) although it may report a weaker outlook. Melcor had of course risen about 20% last month when it announced it would spin off its office and retail rental properties into a REIT (which is would continue to own a majority of that REIT). If that plan were to fall through then presumably Melcor would decline. And if the plan goes ahead perhaps it would rise a a bit more on that news. It is tempting to sell or lighten up on Melcor. On the other hand it’s probably going to be a good long-term hold. My strategy at the moment is to hold and I would probably buy if there was a significant pullback.