April 3, 2019

On Wednesday, the S&P 500 was up 0.2% and Toronto as up 0.1%.

Toll Brothers was up 1.4%. TFI International was up 1.7%.

CRH Medical was down 1.9%. Our report for CRH will be updated tomorrow and rated probably Speculative Buy. I will likely add to my position tomorrow.

Melcor Developments was down 1.9% but that was on very low volume (even by its standards). Checking insider trading I note that Melcor has continued to buy back shares at its small allowed rate of 1262 shares per day. I also see that a long-time director reduced his position by about one third in late March after earnings came out. That is disappointing to see. It could be a negative signal. Melcor is very cheap in relation to asset value but 2019 could certainly be very weak in terms of sales of residential building lots in Alberta. Still, the population of Alberta was up 1.6% in 2018 which provides some support for home building.

Alberta’s economic dashboard is showing a lot of red figures and Alberta may currently have slipped back into recession. Hopefully the election, recently higher oil prices, and hopefully some progress on pipelines will get the economy growing again soon.

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