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

Probably the last great Canadian mining company that is left. He likes that it is the one company in Canada that seems to be able to be in an acquirer as opposed to an acquiree. It is really going to depend on international growth to drive the underlying commodity prices. China, which was a big driver of growth for many, many years, is making a real shift in terms of the kind of growth it is going to have. It is more consumer led as opposed to infrastructure growth. This is not a time to buy stocks that are dependent on a big secular move in base metal prices.

He likes the base metals, which are a big chunk of their revenue. We are just about at the next level of resistance.

Probably one of the stronger names in the pro-growth area. It offers a lot of value. This has had some pretty big moves for a stock that was much lower 8-9 months ago. The chart shows some pretty big swings during its upward climb. You have to buy this at the right price and be convinced that a year from now there will not be some deflationary environment.

This has been overbought. It is a good name. Has no debt issues and a good balance sheet, but it is a commodity producer in the market that is probably in decline for many, many years. Zinc exposure is positive, coal not so positive and copper not so positive right now. Thinks it is going to far and too fast. He would look to be a buyer on a big dip of 20%-30% or more.

This has had a huge recovery. It has been a rough ride over the last couple of years. Management has done a very good job of improving the balance sheet and thinking the long-term. They have long life assets that are outstanding.

It is trading about $3 above the analysts’ price target. You are definitely fairly valued. The value of met coal has more than doubled in the last two weeks. But this represents a tiny portion of met coal’s value. He suggests lightening up.

In a 5-year chart, commodity and resource stocks should have resistance around this amount. As much is this is impressive, you are running into people who have bought this at higher prices a long time ago, and will likely be unloading. Upside is limited.

He recently shorted it. It is a small position, though. He is wary about buying a name that has rallied like this one has. It is a commodity and should not be rallying this much. Chinese steel demand is not particularly strong. Now would not be a terrible time to take profit.

It is moving because coking coal has had a phenomenal move. It seems to be more speculation than anything. The Chinese have been cutting back on production. Zinc as done very well also. Copper has not done well because of a lot of supply. It is a great company long term with good assets.

(A Top Pick Sept 26/15. Down 239.83%.) This was good for a little while, but closed off at the beginning of the year. Had felt that super-cycle mining and commodities had largely ended. It is probably currently overvalued.

First Quantum (FM-T) or Teck Resources (TCK.B-T)? His view is definitely more constructive on this one. It has zinc, coal, nickel. This type of company is always going to have ups and downs, but he feels the financial crisis from 2008-2009 with their debt levels, the management team came out looking much stronger. A good, well-run company.

He was surprised, elated and interested that it had appeared to have been approved on the basis of improvement in their coal situation. It is probably looking better and well able to cope with the financial needs of its future oil/gas program. It also has the greatest zinc mines in the world.

(Market Call Minute.) He was wrong on this one. Has a Short on it and it is killing him. Doesn’t like the coal and he doesn’t like copper, and the rest of it is oil. They’ve done a nice turn around.

He likes the company and the deposit, but he doesn’t like the balance sheet. Doesn’t own the stock, but does hold their bonds.

This has primary exposure to 2 commodities, copper and coal. Unfortunately, they move in the same type of cycles. We have seen a bottoming in both. This company is a great way to play both of those. However, it has had a tremendous move, so he would be cautious. If we start to see some real strength in China, this will be a very leveraged play.