January 23, 2013 Comments

Constellation Software was down 3.3% today. This occurred in the last hour of trading and was on relatively small volume. It could well be that someone was just a bit impatient in selling and wanted to sell today and that could have pushed the price down. I don’t see this as reason for concern. Those with a trader mentality however, might.

Couche-Tard was down a modest 1.1% after Metro Inc decided to sell half of its very large stake in Couche-Tard and did so by way of a secondary offering of the shares tot he public. This naturally tends to push the price down at least temporarily. This also does not appear to be any cause for concern.

Toll Brothers was up 2.1% on continued strength in the U.S. housing market. There were many doomers who were calling, over the past six months to a year or moreĀ  for U.S. house prices to keep falling (oh the debt, oh the unemployment, oh the shadow inventory). Meanwhile Warren Buffett was calling houses the best bet around (household formations were much higher than home construction and the excess inventory was being whittled away, he said, and oh he mentioned too that people could and should borrow at the dirt cheap rates for 30 years locked in). That was about nine months ago, I believe. One bets against Mr. Buffett at one’s peril.

Overall it was not a very eventful day for our Stock Picks.


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