On Wednesday, the S&P 500 was up 0.5% and Toronto was up 0.3%
Aecon Group was up 11.8% after reporting Q4 earnings. Perhaps it is finally doing better operationally after years of cost over-runs on projects.
The Melcor REIT bounced up 8% after reporting Q4 earnings. I have read its results closely and spoken to the CFO. While the distribution suspension is very disappointing, the stock price over reacted to the downside. It’s very unlikely that these units are headed to zero. The REIT has a number of good properties. They are facing a cash crunch at this time and needed to preserve cash. It does appear that the strategic Review is genuinely meant to be beneficial to unit holders in the end. I’ll update the report tomorrow and I expect to rate it Speculative Buy. I fully admit my track record on this one has been bad.
After the close, Linamar posted a strong earnings report.