February 22, 2016 (11:45 am eastern)

Markets are up this morning due to oil being up 5.4% which was in turn due to some new projections about shale supply and drilling rigs.

The finance Minister announced lower growth projections and a higher deficit projections. I am not sure that was news to anyone.

Statistics Canada announced housing construction spending figures for December versus the prior year. Across the country spending was up 4.8% but that was due to multi-family. Spending on single family homes was down 3.4%.

In BC housing spend in total was up 12.6%. However in Alberta it was down 15.8%. Saskatchewan was down 31.3%. (But keep in mind that these figures can be volatile due to large multi-family projects.) Clearly Melcor will be affected by lower single family starts in Alberta. But it does not appear that new home building in Alberta has dried up completely or anything close to that. Melcor is a cyclic company but it is certainly well prepared to survive downturns.