October 26, 2017

On Thursday, the S&P 500 was up 0.1% and Toronto was up 0.2%.

Stantec was up 2.2%, FedEx was up 1.6%, American Express was up 2.3%.

Ceapro, which is a risky penny stock was up 11.9% which only takes it back to 66 cents. This was after it announced a small acquisition. This would seem to be a sign of confidence by management. But it also drains cash which makes the company somewhat more susceptible to financial difficulties. I am interested to see if it report a profit in Q3 or at least positive cash generation.

CRH Medical was down 3.1% on Toronto. It announces earnings next Wednesday.

Melcor was down 2.2%. The continued weakness in this stock is annoying since it is trading so far under book value. Hopefully the Q# report will bring good news. The Alberta economy continues to improve but it is certainly possible that it will have non-cash mark to market losses on its rental building fleet. There was also the bankruptcy of Reid Built homes which likely owes at least some money to Melcor. But overall, I would think that the stock still has a good margin of safety due its assets.

I mentioned yesterday that I transferred U.S. dollars back to Canadian using the Norbert gambit, buying DLR.u on Toronto and then selling DLR. My overall exchange rate was 78.29 cents (Canadian $1.2773 per U.S. dollar) which was excellent considering the official exchange rate for yesterday was 78.06 cents (I believe that was the noon rate, and when I was doing the transaction the exchange rate was somewhere just over 78 cents). To Calculate the exchange rate using DLR I would take the offer price on DLR.u divided by the bid price on DLR. This seems to work out to a good rate compared to the official rate when going from U.S. to Canada.

As it turns out I would have got a better rate today as the exchange rate on the Canadian dollar went down.