November 5, 2013 Comments

Markets started out quite negative on Tuesday but in the end the S&P 500 was down only 0.3% and Toronto was flat.

I neglected to mention yesterday that it was nice to see Melcor back over $20. It was up another 2.5% today to $20.70.

Melcor will report earnings this week and I expect good results. As for the outlook, things still seem to be fairly hot in Alberta as far as home building to my knowledge.

But the news that EnCana is dumping 20% of its staff is sobering. natural Gas prices are very low and while i am not tapped into what is happening “in the field” I understand it is very slow. At some point this could affect the broader economy and house prices in Alberta but so far that is not much sign of it to my knowledge. In any case Melcor looks like a good investment and if were to get hit by a weaker home building market that would most likely be temporary. There are always things to worry about but overall I like holding a good chunk of Melcor shares.

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