Teck Resources Ltd. (B) (TECK.B.TO)

This has done extremely well, and thinks there will be more upside ahead of them. Copper, metallurgical coal and zinc. Zinc is one of the favourite metals over the next 3-5 years. Trading at 12.8X enterprise value to EBITDA trailing. It is cash flow positive which is very unusual for a mining company. Has a 19% ROE. Copper has been given a new long-term monthly and quarterly Buy, which typically means it goes longer and stronger. Very attractive.

He doesn’t own this, because it is a commodities/materials stock, and he would rather own energy in his economically sensitive sectors. This is a survivor, and is leveraged to coal, and then zinc and copper. They definitely came through the last 2 years, selling off some assets, and repairing their balance sheets. If you believe we are going to get an inflationary environment over the next couple of years, $27-$28 is a reasonable buy.

Benefiting strongly from metallurgical coal prices. They also have zinc and copper. It all ties back into if Trump goes ahead with his infrastructure plans and Chinese demand picking up. If so, a company like this will do well.

Overpriced? This has had a great run, and currently is having a little bit of a selloff. He would like to see it a couple of dollars lower before he would buy. If it were to break below $23, he would Sell it.

This has a lot of different moving parts to this. The longer-term chart has been okay, but seems to be breaking down a little. Generally speaking, a lot of the metals can start the year off pretty good, so this company may bounce. However, the chart is looking a little tepid and it may be breaking down. He would like to see the current area break out before he bought into it.

You had a couple of negative technical indicators the last couple of weeks. It has formed a slight downward trend, breaking the former upward trend. Coal broke down on Friday. Seasonally this stock does well from the end of January. Take some money off the table until then.

This had a real decline going back to 2011. Two thirds of their EBITDA comes from metallurgical coal. Met coal prices for the upcoming year have settled at about 40% higher than they were mid-2016. Chinese steel production is picking up. There is better global growth in many areas of the world. This one is a big winner as met coal prices go higher. Feels there is more room to go.

There has been a little softness in met coal recently. Seasonally, the metals and mining sector tend to do well from October 28 into the end of the year. It then tends to have a 2^nd run from January into May. Although it has had an incredible run of 500% from its lows, it is still in its upward trend. He would wait for a couple of days for it to turn around and start to pick up.

There is evidence that met-coal prices came off a bit in China. His volatility stop got hit last week. Around $30 you could buy on weakness. Don’t take your full position right now. It will probably run sometime during December as well as in a month or two.

This has done very well recently, primarily on the strength of coking coal, which is based on manufacturing steel, and to a lesser extent copper and zinc. If infrastructure comes into play, it will be positive for all base metal commodities. The issue in the short term is whether the recent run-up has gone too far. What this rally does is to improve their balance sheet. If you want to stay in the resource sector, this is a good place to be.

This came out of his “blue” level back in July and August. He has owned this since $17. Earnings are racing ahead on this. He has a model price of $77.18, a 124% upside.

Coal, zinc and Copper are the main commodities. It is still in an upward trend, trading above the 20 day moving average, momentum indicators are above average and it is outperforming the market. It does well until the end of April, seasonally.

This has taken off like a rocket, mainly because of the huge run up in coal prices which he thinks is unsustainable. It all has to do with the Chinese doing this thing and the other thing. You can’t really base your investment strategy on what the Chinese are going to do next week or next month. Feels this is significantly overpriced, and represents a real risk to its holders.

This is a very popular stock in Canada. For several years, he has said avoid, avoid, avoid. China is slowing copper. Now the stock has gone absolutely insane. It’s a momentum play right now, and it terrifies him to no end to try and buy this. He would avoid. If you are going to be in it, you must use really tight stops. This is a momentum play behind the “infrastructure spend”, and he is just not sure it is going to materialize.

A year or 2 ago, he recommended shorting this with China slowing down and their huge debt load. Then he recommended going Long on it. Right now, he would not be short this, you want to be Long, because it is getting its balance sheet in shape and has improved its financial division dramatically. As well, copper and coal have had nice runs. Feels there is still significant upside to go.