May 25, 2014 Comments

FirstService is updated but remains rated Weak Sell / Hold at U.S. $48.77 or Canadian $52.91.

In many ways I like the company and its management. But it has a number of accounting complexities. Also even on an adjusted earnings basis the trailing P/E of 25 is not attractive. It could be bought as a speculative pick due to its long-term growth history.

On Friday the S&P 500 rose 0.4% to close above 1900 for the first time. Toronto was about flat.

Toll Brothers was up 1.6% to $35.50 and will release earnings this week.

Canadian tire was down 2.0% to $103.44. This decline was likely in reaction to other retailers reporting difficulties. I had sold most of my shares (all in registered accounts and kept those that were in a taxable account). I may start to buy back a few shares if especially in the price keeps dropping.

Melcor closed at $24.25 but as usual the volume is thin. At some point I will likely begin to reduce my large position in this stock especially if the price keeps rising.

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