JOE - Housing On Fire: Melcor Is A Residential Lot Builder At 25% Of Book Value And 4x Earnings

• Housing markets have taken off across the United States in Canada, driven by low interest rates and work-from-home.
• The market for more spacious, suburban detached homes in particular has skyrocketed due to their increasing affordability and a shift in demand from cramped urban living to the suburbs.
• Melcor's primary business is developing suburban land for single family homes, like 1,700 acres in Denver CO and Phoenix AZ that is already selling - enough for 5,000 homes.
• The company has been buying back the maximum number of shares this year, and continues to pay a healthy dividend as part of a capital return program that will increase with earnings.
• Melcor's valuation implies distress and has been completely overlooked in a market where homebuilders and residential lot developers took off once the market realized the inflection in demand.

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