November 6, 2013 Comments

On Wednesday the S&P 500 was up 0.4% and Toronto was up 0.1% The Dow Jones Industrial Average was up 0.8% to another all-time record high.

Costco was up 3.3% to $124. I have said before it always looks expensive. But what a fantastic operation it is. It appears we should have grabbed some at $112 or whatever even though that did look expensive. It’s one to keep an eye on if it ever falls due to some temporary issue or a general market decline.

Melcor was down 3.1% today. But it’s really thinly traded and it had risen about the same amount in the past couple of days so I consider this to be just “noise”. Melcor released earnings after the close today Wednesday. The headline numbers show a decrease but on an adjusted basis the company indicates a small increase in earnings. The results at Melcor are lumpy by nature and so it should not be expected to smoothly increase earnings every quarter. The company indicates that the outlook remains positive. I will definitely consider buying on Thursday if the price declines but not if it rises. It’s already my largest position and so perhaps I should not be buying. I may also consider trimming if the price rises.

Toll Brothers canceled a planned appearance at an investment conference today. (They canceled today or possibly yesterday and they were to appear today.) Not sure what to make of that. Possibly it canceled pending some news. It just completed its Q4 on October 31 and most companies go into a silence mode between year-end and the release of earnings and so I don’t know why they would be at an investment conference in the first place in early November. I see now after-hours news that they are rumored to be bidding on another company. Sometimes news like that pushes a stock up, more often the buyer’s stock goes down on the news. We shall probably know on Thursday morning. Bidding on another company suggests there are other bidders, so that might suggest they won’t get any real bargain.