Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

Based on the reviews from different experts, Melcor Developments Ltd (MRD-T) is considered a top pick by all. Despite challenges in the real estate sector, the company is seeing positive developments in the Calgary marketplace and in Colorado. It has reported increasing cash reserves, retiring debt, and buying back shares. It is trading at a low valuation with a good yield, backed by a low payout ratio. There is a consensus among the experts that MRD is a promising investment with upside potential.

Consensus
Promising
Valuation
Undervalued
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate MRD as a TOP PICK.  Despite a challenging environment with inflation and high interest rates, the company is seeing good development in the Calgary marketplace and in Colorado.  Recent quarterly earnings showed cash reserves growing once again, with debt being retired and shares bought back.  It trades at 5x earnings and under book value.  The dividend is covered by a payout ratio under 25% of cash flow.  We continue to recommend a stop at $10.75, looking to achieve $14.00 -- upside potential of 21%.  Yield 5.4%   

(Analysts’ price target is $14.00)
Developers (Real Estate)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

Following quarterly reported funds from operations increasing 47%, we reiterate Alberta based real estate developer MRD as a TOP PICK.  The company is shedding assets to allow it to focus on Alberta projects.  Cash reserves are growing, while debt is retired and stock bought back.  It pays a good yield, backed by a payout ratio under 25% of cash flow.  We recommend trailing up the stop (from $10.25) to $10.75, looking to achieve $14 -- upside potential of 16%.  Yield 5.1% 

(Analysts’ price target is $14.00)
Developers (Real Estate)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We again reiterate this Western Canadian real estate developer as a TOP PICK.  Higher interest rates are challenging in the sector, but the company continues to increase cash reserves, while aggressively reducing debt and buying back shares.  It trades at 5x earnings and under book value.  The dividend is backed by a payout ratio under 25% of cash flow.  We recommend trailing up the stop (from $9.50) to $10.25, looking to achieve $14 -- upside potential of 21%.  Yield 5.2%

(Analysts’ price target is $14.00)
Developers (Real Estate)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate MRD as a TOP PICK.  Latest reported earnings met expectations, but were down on the year reflecting reduced confidence in the REIT space with higher interest rates.  We liked that cash reserves grew, while debt was retired and shares bought back.  It trades at 5x earnings and 1.5x book value.  It pays a good yield, supported by a payout ratio under 25%.  We continue to recommend a stop-loss at $9.50, looking to achieve $14.00 -- upside potential of 21%.  Yield 5.3%

(Analysts’ price target is $14.00)
Developers (Real Estate)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O’Reilly

MRD manages and develops real estate properties in Canada and the US.  Recently reported earnings were up 59%.  It trades under book value and pays a good yield, backed by a payout ratio under 25%.  We like that it is building cash reserves while buying back shares.  We recommend placing a stop-loss at $9.50, looking to achieve $14.00 — upside potential of 19%.  Yield 5.0%

(Analysts’ price target is $14.00)
Developers (Real Estate)
WATCH

He has been short. It is getting to a valuation where he is thinking about covering. Their problem was they were based in Calgary. It is starting to look interesting on a price to book basis. He is not quite sold on it yet. Their earnings are not going to turn around any time yet. He would not buy it, but he is covering shorts.

Developers (Real Estate)
DON'T BUY
Land and residential development, primarily in Alberta. This is not a REIT so something he would not be interested in. In an economic recovery, it would have tons of torque to the upside and leverage. Since he doesn't see this recovery it probably would not keep pace with the rest of the real estate sector in Canada.
Developers (Real Estate)
DON'T BUY
Primarily land banking and servicing land and having it annexed by Calgary. Slightly up the risk curve because they do have a small portfolio of assets that are cash flowing, but the bulk of the assets you are buying into is raw land that is non-cash flowing.
Developers (Real Estate)
BUY
Alberta and western Canada focused. Generally they own land around the city of Calgary and that land gets developed, serviced and then annexed to the city. Higher up the risk curve, but they have been able to generate tremendous results, both last year and this year. You aren't buying real-estate so much as the land and banking on the appreciation of the land in the annexation.
Developers (Real Estate)
BUY
A cheap stock, which should go up.
Developers (Real Estate)
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Melcor Developments Ltd(MRD-T) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Melcor Developments Ltd is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Melcor Developments Ltd(MRD-T) Frequently Asked Questions

What is Melcor Developments Ltd stock symbol?

Melcor Developments Ltd is a Canadian stock, trading under the symbol MRD-T on the Toronto Stock Exchange (MRD-CT). It is usually referred to as TSX:MRD or MRD-T

Is Melcor Developments Ltd a buy or a sell?

In the last year, there was no coverage of Melcor Developments Ltd published on Stockchase.

Is Melcor Developments Ltd a good investment or a top pick?

Melcor Developments Ltd was recommended as a Top Pick by on . Read the latest stock experts ratings for Melcor Developments Ltd.

Why is Melcor Developments Ltd stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Melcor Developments Ltd worth watching?

0 stock analysts on Stockchase covered Melcor Developments Ltd In the last year. It is a trending stock that is worth watching.

What is Melcor Developments Ltd stock price?

On 2024-02-21, Melcor Developments Ltd (MRD-T) stock closed at a price of $11.77.