Our report on Melcor Developments is updated as a Strong Buy at $12.89. This stock is down 11.5% in 2016 and was down 26% in 2015. And its main business of selling residential building lots is down about 60% in 2016 to date. And any recovery in the business of selling building lots may be some ways off. That’s the bad news. But the good news is that the stock is selling at just 44% of book value. On an enterprise bases (debt plus equity) the company is valued at 66% of the book value of the equity plus debt. And with half of tis assets in the more stable business of commercial rental buildings and with a reasonable debt level, the company is well positioned to easily survive this period of lower revenues. Unless Alberta is going to be in a severe and very prolonged recession, it seems reasonable to expect that this stock will eventually turn out to be a very good investment at this price. But it may continue to require patience. The stock is very thinly traded and is not without risk. Despite this decline the stock is up 258% since it was added to this site in December of 2002. It’s my largest personal position and I am tempted to add to my position.