The Bank of Canada appears to have a blind spot when it comes to house prices. Its key policy gauge of core inflation tends to overlook the cost of land. So, conceivably, property prices could again go through the roof without immediately drawing the central bank's attention. That might help explain recent buying in the development area. Melcor Developments Ltd. is one company that has popped up on our screens.
Over the past year, insiders have spent just under $350,000 to purchase shares in the public market while the stock price has more than doubled. Can Melcor build on its gains? At this point, our signals remain positive for the stock, although investors should stay on the lookout for any changes to insider sentiment.
Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors. Investments profiled are from a recent edition of the Morning INK report which is distributed daily to subscribers and clients of select financial institutions. INK staff may hold shares in profiled securities.