MRD is very cheap at 7.5X earnings, with a 5.3% dividend. It is up 13% YTD. Debt is high, and historical growth is not huge, though EPS growth looks to be improving over the next couple of years. Only one analyst follows it. Insiders own 13.6% directly and 51% through a holding company. Trading can be very thin. The dividend was last raised in March. As a real estate developer, there is economic, small cap and interest rate risk here. But we note it has been profitable for 20 years, including in the 2008/09 financial crisis. Not exciting, certainly, but priced well. We would only give it a HOLD, however, with various risks and trading liquidity offsetting the low valuation.
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