March 7, 2018

On Wednesday, the S&P 500 was close to unchanged (down 0.05%) while Toronto was down 0.5%.

CRH Medical was down 4.3%.

BHP (BBL on New York) was down 1.9% an the company has spoken out against Tump’s tariff plans for steel and aluminum. BHP’s main product is iron ore sold mostly in China and other Nisan locations and the tariff is likely somewhat harmful to BHP.

Costco was down 2.1% but then released results after the close that apparently beat expectations.

Linamar was down 0.6% but then released a strong earnings report after the close.

Canadian Western Bank was down 1.5% but will release earnings before the opening.

Melcor was down 0.9% and then released earnings after the close. It appears to me that the fourth quarter was fairly strong. Lot sales were strong but it was most mostly lower priced lots that they sold. They had been offering incentives to help sales throughout 2017 but they indicate that this is no longer the case as sales have returned to normal levels (which I would take to be higher than 2016 but lower than the peak years) in 2018. All in all, I see no reason for this stock to be trading at slightly under half of book value. Hopefully this report will push the price up somewhat. However, real estate is an unpopular sector at this time and so those holding this stock are likely to continue to have to be patient.