August 6, 2019
On Tuesday, the S&P 500 had a partial recovery from yesterday’s losses and was up 1.3%. Toronto, playing catch-up, was down 0.75%.
Some stock movements of note included: Canadian Tire- down 2.1%, TFI International – down 2.6% (I was happy to grab a few more shares of this excellent company with the decline), Linamar -down 3.2% (which seems awfully cheap but it gets hit with trade war fears as well as concerns about slower auto sales), Melcor down 3.2%.
It seems that the market has a hard time dealing with cyclic stocks like Melcor and Linamar. The fact that Melcor’s book value is some 150% higher than the stock price and that those assets are solid seems to count for nothing at this time.