On Monday, the S&P 500 rose 0.6% and Toronto was up 0.9%. This was on optimism about the Greek debt deal.
Most of the stocks on our list were up.
Melcor managed to fall 1.5% to $17.25. In my view that is “Mr. Market” offering to sell a stock cheap. Oil (West Texas) is at about $73 Canadian. Prior to 2004 oil had never been as high as $60 Canadian. This according to monthly data from http://www.indexmundi.com/commodities/?commodity=crude-oil-west-texas-intermediate&months=240¤cy=cad
Yes, we spent about seven years above $70 Canadian and sometimes above $100. But really $73 Canadian is not that low for oil, it’s just lower.
A Stats Canada report released today said that investment in residential home construction (includes multi family) in Alberta was up 8.3% on the year. I certainly don’t expect Melcor to be selling increased numbers of building lots right now but there is no indication of a huge slow-down at this point. Also Melcor relies on subcontractors to do the actual work of developing land and their prices for the subcontractors are down. There are always scenarios to think about where the stock goes lower but I have had good success over the years buying stocks when they seem to be cheap. I grabbed another 150 shares of Melcor today.