If you've always wanted to buy some Alberta real estate but felt it was too expensive, Desjardins Securities may have found a backdoor solution in Melcor Developments Ltd.
The Edmonton-based company has 8,865 acres of undeveloped land in key Alberta markets, which Desjardins analyst Jeff Roberts suggests is worth more than triple its recently estimated value of $247-million. Mr. Roberts believes the shares are trading below book value, considering the historical price of real estate in the province and Melcor's income-producing portfolio.
"Clearly, Melcor's current share price offers an opportunity to buy Alberta land at a significant discount to value," Mr. Roberts wrote in a note to clients last week.
Mr. Roberts estimated the company's book value - the value of its assets minus its liabilities - plus its income-generating properties is $13.37 a share. Yet, the company closed trading last week at $13.30.
Tuesday, July 15, 2008
Thursday, July 10, 2008
GTA housing prices rise, number sold goes down
Fewer houses are being sold in Toronto but home prices are still on their way up, according to a recent report by the Toronto Real Estate Board.
The report, released Friday, said resale home prices in Toronto went up four per cent in the first two quarters of 2008, compared with homes sold during the same period last year. The average price in the first two quarters of 2008 was $427,198.
In the 905 region, the price of resale homes went up by five per cent to $365,536.
About 8,600 homes changed ownership throughout the region in June, a decline of 18 per cent from the June 2007 total of 10,451.
The report, released Friday, said resale home prices in Toronto went up four per cent in the first two quarters of 2008, compared with homes sold during the same period last year. The average price in the first two quarters of 2008 was $427,198.
In the 905 region, the price of resale homes went up by five per cent to $365,536.
About 8,600 homes changed ownership throughout the region in June, a decline of 18 per cent from the June 2007 total of 10,451.
Friday, July 4, 2008
Markets overlooking some small-cap gems
Veteran small-cap manager Martin Ferguson, director and portfolio manager at Calgary-based Mawer Investment Management Ltd., says that there is considerable apathy towards small caps which is the result of the credit crisis, the slowdown in the United States and concerns about the resurgence of inflation.
"We have not seen this degree of indifference to small caps since the height of the tech bubble, when investors fled all other segments of the market to pile into tech stocks."
Canadian small caps have underperformed their big-cap counterparts for four years including 2007. "Year-to-date the underperformance has persisted," he says.
"We have not seen this degree of indifference to small caps since the height of the tech bubble, when investors fled all other segments of the market to pile into tech stocks."
Canadian small caps have underperformed their big-cap counterparts for four years including 2007. "Year-to-date the underperformance has persisted," he says.
Wednesday, July 2, 2008
Alberta trails nation in cottage-ownership count
Alberta may well have the lowest percentage of cottage owners in the country, but the province also boasts recreational property prices well above the national average, says a report on recreational properties released yesterday by Royal LePage.
Seven percent of Albertans own a cottage, the survey says, compared to the national average of 9%.
The average prices of a standard waterfront cottage sits at $1.3 million in Alberta. Nationally, average prices range from $327,000 to $1.1 million.
Seven percent of Albertans own a cottage, the survey says, compared to the national average of 9%.
The average prices of a standard waterfront cottage sits at $1.3 million in Alberta. Nationally, average prices range from $327,000 to $1.1 million.
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