September 14, 2014 Comments

On Friday the S&P 500 was down 0.6% while Toronto was about unchanged.

Toll Brothers was down 1.8% to $33.07. Melcor was down 1.1% to $23.74. That drops the price to book value to 1.0. It is a cyclic company that would suffer if there happens to be a slowdown in housing construction in Alberta and the western provinces. And the book value has been pushed up somewhat by its rental buildings that are marked to market under IFRS accounting. Nevertheless, I find the chance to buy this company with a long history of growth at book value to be attractive.

As of Sunday evening, markets were set to open lower on Monday. While rising markets are always more enjoyable, declining markets offer opportunities as well.