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Melcor Developments Ltd T.MRD

Alternate Symbol(s):  MODVF

Melcor Developments Ltd. is a diversified real estate development and asset management company The Company develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centers, and golf courses. The Company operates in four segments: Land, Properties, REIT, and Golf. The Land segment is responsible for purchasing and developing land to be sold as residential, industrial and commercial lots. The Properties segment owns approximately 24 leasable commercial, retail and residential properties and other rental income producing assets, such as parking lots and land leases. The REIT segment owns approximately 38 leasable commercial and retail properties and other rental income producing assets, such as residential property, parking lots and land leases. The Golf segment owns and manages three 18-hole golf course operations (one of which is 60% owned) and has a 50% ownership interest in one 18-hole golf course.


TSX:MRD - Post by User

Comment by longrun86on Sep 07, 2022 3:26pm
93 Views
Post# 34947605

RE:RE:Due Diligence - Input Requested

RE:RE:Due Diligence - Input RequestedAppreciate the response!

I want to be clear that my original post wasn't meant to be derogatory towards Management or the Directors. I certainly think they have been trying and the ultimately they are demonstrating their belief about the mispricing buy purchasing shares directly and through the NCIB. Sometimes the market is just apathetic. In the long run the market is a weighing machine rather than a voting machine. I have never made money in the market based on "sentiment" and it seems like the only real returns I have ever made have come from buying during times of apathy in a business that has had a rough go but will make it out and return to normalized earnings over time.

I use Morningstar which provides accessible data back to 2012. Between 2012 and 2021 the average Return on Equity was 7.4%. If you look at the period from 2012 to 2016 it was 10.7% followed by a period of lackluster returns from 2017 to 2021 of 3.9%. The highwater mark for ROE was in 2012 at 16.2% and the low water mark was in 2020 which was 1.8%.

LR
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