On Tuesday, the S&P 500 was up 0.3% and Toronto was about unchanged.
CRH Medical was up 12.8% in Toronto and a similar amount in New York. Apparently the market and or analysts were pleased with its Q4 report and the analyst conference call this morning. I may have been hasty in selling 44% of my shares today but we shall see. On an adjusted basis the profit level definitely supports the current share price. But I am not clear what the profit is going to be in 2018 with the government-mandated lower prices for its services. I will update the report for CRH in the next few days.
Meanwhile… stock futures are down about 1% on news that White House Economic adviser Gary Cohn has resigned. Trump’s views that all trade deficits are bad is certainly popular. I don’t think it is correct and it probably represents a very uneducated view. But voters are not typically educated in economics and so it plays well. Trump continues to claim that the U.S. runs a trade deficit with Canada when in fact it is a surplus once services are included as well as goods. Increasingly these days people seem shameless about using “alternative facts”. We shall see how things unfold.
Melcor Developments reports after the close tomorrow and Canadian Western Bank before the open on Thursday. Hopefully these stocks will respond positively on Thursday.