On Thursday, the S&P 500 and Toronto were each about unchanged.
However Toll Brothers fell 4.1% as some other home builder companies reported heavy use of incentives to sell more houses. Also recent reports indicated some slowing in new home sales in the U.S. Toll Brothers will not report again for about a month. My inclination is to buy this on dips. It’s P/E is high which means it does need to continue to grow profits to justify its price. Based on analyst forecasts of earnings in 2015 it trades at 15 times those projected earnings.
Melcor fell 2.3% to $25.62. Again my inclination would be to buy on dips. The stock is up a lot lately and so it is going to need a good Q2 report (on August 7) to maintain and grow the price. If the earnings and outlook are strong then Royal Bank will likely update its recent Buy recommendation which could generate renewed interest. Aside from that short-term possibility it is a very well managed company which should be a good long term investment. It does however tend to be cyclic and would drop in price if new home building in Alberta slows significantly.