July housing starts show that single family starts in Alberta remain strong. The increase in Alberta was 85% versus 2020. That’s hard to interpret given the impacts of the pandemic last year. But the national average increase was far lower at 29% and so the growth in single-family housing starts in Alberta in July was much higher than the national average.
Melcor is set for strong results over the last half of 2021 based on housing starts, the number of lots it is developing and a pending large bulk sale of developed lots in Colorado. It also already announced a sale of undeveloped lots in the U.S. as well as a sale of a building there both of which will add to Q3 earnings. Melcor has remained stubbornly under-valued for a long time and continues to suffer from lack of analyst interest.
The report on Melcor is updated and remains rated Buy.