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

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.

It has been a terrific bounce. He would sell it now. He does not see the fundamentals supporting the current price.

This has been going through the normal process that all mining companies have been going through, focusing on costs, trying to improve the bottom line in a commodity price environment that looks to be lower for longer. Have had to force themselves to operate more efficiently. There has been a good recovery off the bottom recently, but that is not unusual after having such a disastrous fall off. Recently increased their guidance on coal production and shipments, which was positive. Probably fairly valued, so it comes down to how much more can they do to improve the bottom line.

(Market Call Minute.) He would own the bonds, not the stocks, at this level.

(Market Call Minute.)

(Market Call Minute.) He is Short the stock. Given the balance sheet, it is too far extended. It had a good run.