On Tuesday, the S&P 500 was up 0.7% as U.S. markets await the election results. Toronto was up 0.5%.
TFI International was up 3.6%. Starbucks was up another 2.4%
Melcor Developments released earnings after the close that were very similar to year ago levels although slightly lower. It did sell 335 lots in the quarter compared to 320 last year but more of the lots this were joint venture and the average price per lot was down 2.2% which may have been due to a different mix of lots or may have been due to some weakness in the market. Lot sales were down in Edmonton and Calgary but there was a very large increase in lots sold in Red Deer. The surge in Red Deer sales was likely due to having more lots available for sale there as opposed to any surge in demand. Overall, the earnings report was good and should provide support for he stock price which is at less than half of book value. But it is Q4 that is the biggest seasonal quarter and the market (such as there is one in this very thinly traded stock) may be fearful of a slower Q4. With the Alberta economic recovery having faltered somewhat lately and with the new home market softening it will be difficult (perhaps very difficult) for Melcor to match last years’s Q4. But the (low) stock price may already be fully reflecting that expectation.
Statistics Canad reported building permits for September which were up 0.4% versus August. But digging into the details I calculate that September was down 7% year over year. And when it comes to single family home permits the report indicated: “The value of building permits for single-family dwellings was down 1.2% to $2.2 billion in September, the fourth consecutive monthly decrease. Four provinces reported declines, most notably Ontario and Alberta.” For Alberta the non-seasonally adjusted single family number was down 20% in September versus August but the number for September 2017 was not provided.