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

They made the most compelling talk for their company at the PDAC show last week. Met Coal markets are rough because of a flood in Australia that caused a run up in coal and then a flood of supply, which has now been used up. They can now complete the Fort Hills project much cheaper than before because of what has happened in the industry. You need to trade commodity stocks for a number of years. Consider it on a pullback and sell if it has another rally.

It has had a nice little bounce from $3 or so, partly because of a run in commodities. It is a combination of sentiment, short covering and the US $. Likely it will not go back down to $3. She would not buy it here, but wait for a pullback.

He has been looking, but is not convinced of a resurrection at all. He is still in a bit of a disbelief format. As a company, it is excellent and had liked it in the past. Good management. A little too early.

A heck of a bounce off the bottom. The problem he sees is that the earnings have not bounced off the bottom. The stock is very cheap but since earnings are not there, then it is just speculation that is driving it. It is so cheap that you can afford to buy it and cross your fingers.

So much of this depends on the China story, and the demand for coal for steel making. That situation is far from resolved in China. There are shiploads of coal and iron ore bobbing around all the coast of China. He stays away from these types of companies.

It is absolutely amazing that it has done this. We are having a base metals recovery in the stock. This one should defy the odds and continue up.

With stronger prices in copper and zinc this has been going up recently. Coal is still a drag. If the economy does not recover, the company is not going anywhere.

This has had an absolute killer of a downtrend. Chart shows a little bit of a rounded bottom currently, and that is actually pretty positive. He would look at that is a place to hang your hat on. $6 can be a really important level for it to hold. It really has to catch some momentum before you get some investors, so it is going to be volatile until then.

The last time he recommended this, the stock had actually got down to its cash per share. Cash per share for this company is about $3, so it still has a way to go. Speculative down here because of their debt, and we don’t know what the outlook for coal is going to be.

Basically a coal producer. Coal companies in the US have gone bankrupt. This company has seen their bond yields go through the roof and their stock price is very low. TransAlta (TA-T) is having to move away from coal fired power plants. This one is just for speculators.

It is going through a really tough time. He has trouble finding a reason to own it through 2016. Copper will struggle to stay above $2. Met Coal is taking it on the chin. The balance sheet will become highlighted because of the difficulty generating cash flow. Prefers LUN-T.

(Sell?) This has a very strong correlation to the Bloomberg Commodity Index, which has been going down. Have been reducing their cost structure, closing high cost mines. They don’t have any debt maturities until 2017. They have liquidity on the balance sheet for now. Feels this is the wrong time to be panicking and selling. Hopefully things will stabilize and then you can have another look.

He is not brave enough to buy it. Something in the coal market would have to change radically. A lot of take-or-pay contracts have expired. He hears India wants to build 100 to 200 coal powered generating plants.

Metallurgical coal, copper and lead. The coal and copper goes to China. You really have to believe China is not falling apart. They say they are growing at 6.8%, but everything else tells you they are growing much slower. 49% of their GDP numbers is investment driven. The US GDP after WWII, when they were growing like gangbusters, investment as a percentage of GDP was 25%. There is no way that China can keep going the way they are. Doesn’t think this company is going to grow that quickly.

A mining stock. Biggest product is metallurgical coal, but also has copper and zinc, etc. A good company, but with commodity prices where they are, it doesn’t matter. He is not going to own any metal stocks until things are better. If things stay down for a protracted period of time, this company could get into financial trouble through no fault of its own. He is no rush to buy this or any other metal stock. Wait until metal prices bottom out.