The report on Melcor Developments is updated and rated Buy at $10.36. This has indeed been a frustrating investment. Based on its book value per share of $39.50 it appears to be vastly under-valued. But it has made poor returns on equity for the past ten years. And with higher interest rates affecting both its revenues (harder to sell home building lots) and its expenses it seems that a sharp recovery may not be imminent.
Given the low ROE it may be that this company has its assets stuck in inherently low return businesses.
On a positive note, the 5.6% dividend yield is quite safe and will likely be increased in 2024.
If Q4 comes in reasonably strong we should see an increase in the share price.
The stock also suffers from an almost total lack of analyst coverage. RBC does cover it and has a price target of $16