On Tuesday the S&P 500 closed at a new record high as it rose 0.2%. Toronto was down 0.2%
Penny stock Ceapro was up 21% to a 52 week high after it announced progress on its research into “an inhalable therapeutic for COVID-19. However, this is very early stage research. They only now hope to soon begin Phase I and Phase II trials – but they do expect that this could move quickly. In any case this is a step forward. Ceapro has several research irons in the fire.
TFI International was up another 4.1%.
Our report on Melcor Developments is updated and rated Speculative Buy at $7.25. Q2 earnings and cashflows were better than I would have expected. The company seems pleased. But the comp[any is also being cautious in conserving cash and cutting expenses. This has been a disappointing investment for quite a few years. It now trades at just 22% of book value. It would seem that either its assets are greatly over-valued on the books or the market is pricing the shares far too low or some combination of the two. Part of the problem is an exceedingly thin trading volume and lack of interest from analysts.
It has been in the news that “Warren Buffett” bough about $600 million shares in Barrick Gold reversing his previous disdain for Gold as a long-term investment. At $600 million it is perhaps most likely that Buffett himself made this investment decision for Berkshire. But it is also possible that it was one of his two portfolio managers who made this decision. They act independently. If Berkshire / Buffett wanted gold itself as an investment they would have done that. They may simply see Barrick as an under-valued company. But I would agree that this has to be seen as some kind of show of faith in gold since Barrick’s value depends on the price of gold to a good extent.
It has crossed my own mind lately that perhaps a modest investment in gold would not be such a bad idea. given all the money printing that is going on.