May 16, 2013 Comments

Melcor is updated and rated (higher) Buy at $18.62. I may add to my position in this company.

Constellation Software rose 4.5% today. I don’t know the reasons that it is has been rising. I will plan to update the report on this company in the next few days.

I have mixed feeling about the markets. My analysis of the S&P 500 dated March 24 suggested that the S&P 500 looked about 12% over-valued at 1557. Sine then it has risen 6% to 1650. It’s trailing earnings are just a little higher than they were in March. This analysis is meant to be a long-term indicator but it does suggest that the S&P 500 is somewhat over-valued.

Meanwhile I like the U.S. stocks I hold, Wells Fargo, Bank of America and Toll Brothers. I like Berkshire as a company but its shares no longer look particularly attractive. And I like the Canadian Stocks that I own including Canadian Tire and Melcor. Also Canadian Western Bank and probably Stantec (this one not updated recently). I am not sure about Constellation until I update it. These are all the stocks I own in any meaningful amounts.

So, it’s hard to know if I should add to the stocks I like or instead take some profits since the overall S&P 500 seems somewhat overvalued. There is also the option of sitting tight and re-evaluating as time goes on.


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