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

Materials stocks have to go through the balance sheet write downs. This one is foretelling this will happen to this one.

If you believe in his recovery thesis going out 3-4 years, this is an absolute Buy. Will improve as copper prices improve. Also has tremendous leverage on the coal side and he feels coal could see signs of a recovery. You are getting a good yield while you are waiting.

Chart shows a large drop from mid-year, and it is not a pretty picture. The good news is that the metals and Mining stocks can actually start to do well from the last part of January right through until April. This could be a good buying opportunity, but you want to wait to see commodities pick up a bit.

In all of the commodities they produce, the prices have gone down, particularly for coal. The question is, is the dividend of 6.25% sustainable with commodity prices this low. When you see a company with a yield of over 5%, the market is probably telling you that the dividend is not sustainable. He doesn’t see commodity prices rising any time soon.

It is too early to get into this area, but if you already hold it then hold. Bigger companies could be trying to squeeze them out. Loves it, but he is not a buyer.

Not favourably disposed to this company, principally because of its main output of copper and coking coal. These are both challenged markets for the next 3-6 months. If there was a recovery in metal prices, this is not one of the ones that he would own.

Management is kind of buoyant, recognizing their strengths and the long-term patience that a company has to have. This is the most important company in non-gold metals. Dividend yield of 6.6%, which he thinks is pretty safe. If you own, you have to be patient. The end of the year tends to be a time when some important conferences come up, and this is clearly an important name.

A lot of the bad news is out in the commodity cycle. You get a ride in these commodity stocks. He is thinking the commodity cycle will look better in 2015, so for the time being he is Holding. If you own it in a taxable account and you need the loss, you can take it and Buy it back later.

Believes this is selling at reasonably good valuation these days, but it is not necessarily a slam-dunk. The dividend is safe if commodity prices do not deteriorate a whole lot more. If coal prices go below $100, he would be worried about the dividend. Currently this is selling at such a reasonable price, given the scope of their operations, that it could have significant upside from here. Wouldn't be surprised, should there be some recovery in copper, zinc and coal that this could very quickly be a $30 stock again.

Buying it at a discount is always a good thing. But the market is telling you there is half the demand moving forward although he does not agree with it. Copper demand is not going away. It is a buy if you have three years to hold it. It is quite attractive here.

Loves the 5% yield and loves the company. If you have it now, stick with it. Doesn't know if it has any lower to go, but it is pretty much near the bottom.

This has a strong balance sheet, is well diversified and is still making money. Looking at a 5 year hold, you're getting a 5% dividend during that period. They are expecting the coal market to even out next year. This is not a bad plan. His company has a $25 target on this.

Metallurgical coal prices have been weakening. It is at the point where a lot of the producers are not making money and there have been supply cuts announced, but they haven't fully come on stream. This is a low-cost producer in coal as well as copper. Have restructured their balance sheet and have no debt maturing in the next few years. Feels the dividend is sustainable, at least for the next year. At this price and a yield of 3.5%, it is probably an attractive entry point if you are a long-term holder.

Highly leveraged to met coal as well as copper. Fortunately met coal is in a better fundamental position than iron ore, so there is some light at the end of the tunnel. Probably no growth for the next 3 years. Fort Hills is where they are spending significant amounts of capital, and which probably absorbs much of their free cash flow. You'll see copper expansion projects and you will see zinc expand a bit, but the bottom line is that close to 50% of its revenue is from met coal.

This is a dual class share company and he doesn't like that kind of situation to invest in. The commodity boom which ran from the late 90s to the financial crisis is suffering today. Doesn't know if this is just a temporary downturn or could it continue for a while.