Canadian Oil Sands - Economic BOOM

[Maverick]

As a result of the huge economic boom in Alberta Canada from the oil sands reserves; I purchased two pure-play Alberta developer (real estate) companies. My reasoning for this is because economists and analysts have been very bullish on the booming Alberta economy.

The two stocks are GDC (Genesis Land Development Corp.) and MRD (Melcor Developments Ltd.) on the TSX. Both have a 4% weighting in my portfolio.

Any opinions and insight into this investment strategy would be appreciated.

Here's the links:

Melcor Stock Movement
http://chart.globeinvestor.com/servlet/charting?chart_type=png&lang=EN&chart_style=stock_price_volume&period=5YRW&listing_id=110111&comp_listing_1=&comp_listing_2=&comp_listing_3=&avg_1=&avg_2=

Melcor Website
http://www.melcor.ca/

Genesis Stock Movement
http://chart.globeinvestor.com/servlet/charting?chart_type=png&lang=EN&chart_style=stock_price_volume&period=5YRW&listing_id=176796&comp_listing_1=&comp_listing_2=&comp_listing_3=&avg_1=&avg_2=

Genesis Website
http://www.genesisland.com/

[Maverick]

Two months ago, stats research stated that the Calgary residental area is more expensive than in Rome! Today, Report On Business ( www.robtv.com ) says that the Calgary housing market has risen 55% this month as a result of the booming economy.

Could there be any downside to having two pure-play Alberta real estate companies?

[NATHAN LLOYD]

You're in a different world in Canada. The housing sector is as cold as Siberia here in the US.

[chinaman711]

AP
Atco to Build Village for Shell Workers
Wednesday July 5, 4:48 pm ET
Atco to Build Village for Workers at Shell's Athabasca Oil Sands Project


CALGARY, Alberta (AP) -- Atco Ltd.'s residential structures unit has won a contract to build housing at Shell Canada's Athabasca oil sands project north of Fort McMurray, Alberta.
Atco Structures said Wednesday the contract covers the first phase of a project to manufacture and install housing for workers at Shell's planned expansion of the Athabasca oil sands project.

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Financial terms of the deal were not revealed.

The proposed housing development will be six miles southeast of Shell's existing Muskeg River Mine and will initially house 800 people, with expansion potential to accommodate 2,500. It will feature a large main building with a gymnasium, running track, workout area, lounge, lecture hall and dining area.

"We are looking to attract skilled people from across Canada to work on our project, so offering top notch accommodation is essential," said Terry Letherby, project manager for Shell's oil sands expansion.

Atco said it will begin manufacturing the modules for the so-called Albian Village at its Calgary plant this summer. The parts will be shipped to the Athabasca site and installed by Atco by next year's first quarter.

Albian Sands Energy Inc. is the joint venture company that operates the Muskeg River Mine on behalf of the owners of the Athabasca oil sands project, Shell Canada, Chevron Canada and Western Oil Sands.

Atco Structures makes and sells work force housing and other modular buildings.

Parent company Atco Group has operations in power generation, natural gas distribution and other sectors.

[Maverick]

You're in a different world in Canada. The housing sector is as cold as Siberia here in the US.

It's really just Alberta and part of BC that's hot in Canada.

The labor demand in Alberta is enormous which has lead to high inflation. For example, people working at McDonalds in Alberta are making $20.00 a hour.

If anyone is currently looking for work, Alberta is a possible solution. Labor workers for the oil companies are making over $100,000 per year!!!!!!!!!!!! Laid off car manufacturing workers from eastern part of Canada, such as Ontario and Quebec, are moving to Alberta for employment along with a large number of new immigrants.

[madcowdisease]

It's really just Alberta and part of BC that's hot in Canada.

The labor demand in Alberta is enormous which has lead to high inflation. For example, people working at McDonalds in Alberta are making $20.00 a hour.

If anyone is currently looking for work, Alberta is a possible solution. Labor workers for the oil companies are making over $100,000 per year!!!!!!!!!!!! Laid off car manufacturing workers from eastern part of Canada, such as Ontario and Quebec, are moving to Alberta for employment along with a large number of new immigrants.

Hopefully the USA is just a weigh station for all the Mexicans on their way to Fort Mac. Let Canada deal with 'em.

[Lou]

Im not sure Id say the housing market is dead/cold. Im in Columbus and in the month of June we had our biggest month in probably 6 months. A huge month.

[Maverick]

Hopefully the USA is just a weigh station for all the Mexicans on their way to Fort Mac. Let Canada deal with 'em.

LOL

[Maverick]

Melcor Developments Ltd. ( MRD - on the TSX ) announce after the market closed today the following quarterly report.

Melcor Developments Ltd., EDMONTON AB (TSX:MRD) Releases Second Quarter Results

EDMONTON, Jul 26, 2006 (Canada NewsWire via COMTEX) -- (Canada NewsWire)

SECOND QUARTER RESULTS

----------------------

Melcor Developments Ltd., an Alberta based real estate development company achieved net earnings of $15,017,000 or $0.49 per share (basic) on revenue of $72,378,000 for the six months ended June 30, 2006 compared to net earnings of $7,870,000 or $0.26 per share (basic) on revenue of $39,688,000 for the same period in 2005. Diluted earnings per share were $0.48 for the six months ended June 30, 2006 compared to $0.26 during the same period in the prior year.

Earnings for the three months ending June 30, 2006 were $7,912,000 or $0.26 per share ($0.25 per share diluted) compared to earnings of $5,297,000 or $0.17 per share ($0.17 per share diluted) during the same period in 2005. Revenue for the second quarter was $37,950,000 compared to the second quarter in 2005 when revenues were $24,095,000.

The company paid a semi-annual dividend of $0.15 per share on June 30, 2006 to shareholders of record on June 16, 2006. This compares to a semi-annual dividend of $0.075 per share paid in June 30, 2005.



http://tsedb.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/tsx/config&date=20060726&archive=cnw&slug=C9518


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[Maverick]

Home sales on pace to shatter records in Canada primarly in Alberta (Calgary & Edmonton)

Friday July 28, 2006 Press Release

http://www.theglobeandmail.com/servlet/story/RTGAM.20060727.wrealestatee0727/BNStory/Business

Statements from Report

The largest jump in sales volume for Canada was an 18.1-per-cent rise in Calgary for the first six months of the year, followed by a 17.4-per-cent leap in Edmonton.

The sales bonanza was obvious in major cities across the country. Calgary and Edmonton set new records yet again, but they were joined by Regina, Saskatoon, Winnipeg, Montreal, Quebec City, Sudbury, Ottawa and London, Ont.

Record-breaking average prices were seen in Calgary, Edmonton, London, Montreal and Quebec City.

"With interest rates having peaked, strong employment and rising after-tax incomes will no doubt keep resale housing activity strong over the second half of the year," said CREA's chief economist, Gregory Klump.

Much of the "froth" in the Canadian market stems from sales in Calgary and Edmonton, he said.

"If you strip out Alberta from the numbers, things are a little more subdued," he added. "The Canadian market is not as vulnerable to a downturn as the U.S. market."

"Plus, in Canada, incomes are rising steadily, the labour market has been stronger and retail sales have been stronger” all pointing to a much healthier consumer in Canada than the United States, he added.

[Maverick]

The underlying fundamental value of the company and future growth are finally starting to appreciate the stock price.

http://tsedb.globeinvestor.com/invest/investSQL/tsx.show_chart?iaction=Generate&pl_period=6D&pl_primary_listing=MRD-T




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[PMitc34947]

How did GDC work out for you? The chart I found for this on the TSX site looks quite volatile.

[Maverick]

I'm up 40% on Melcor. GDC on the TSX I'm still holding.........it's a pure play on the real estate economy in Alberta which is growing faster than China's economy.

Patience is a virtue and when GDC's earnings report comes out soon I strongly believe the stock is going to skyrocket.

My perception is it's crucial to buy when it's quiet and sell on the highs when there's a mad rush to buy the stock. We'll see what happens but the fundmentals are very strong.

[Maverick]

report came out......... not as huge earnings as I expected however their future projections in late 2007 are estimated to be substantial.

How has the stock reacted to the earnings report?

The stock has moved up 15% since the report came out (as of April 9th).

[Maverick]

Genesis Land Started At Top Pick, C$11.25: Desjardins >GDC.T Dow Jones Newswires

:rolleyes: