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

Would not be adding this or any of the other base metals to his portfolio. There are too many question marks out of China.

Copper and Coal. For the next couple of years they will probably underperform. There is an economic dynamic for Coal over the next couple of years. Maybe not a lot of downside in copper, but these two things are a negative. From a trading perspective he is okay owning it, but don’t buy and hold.

The problem here is that coal prices are not doing very well and no one seems to think that they are going to have a recovery very soon. There is also a suspicion that they may be involved in another takeover. Seasonality has now peaked and she would expect that prices will now correct. During the summer might give you a better entry point.

This has been a disappointing scenario for him. A few years ago he was interested in resources, but has now done a 180° and is completely out of them.

Canada’s biggest mining company. If you want to play mining in a safer way, this would probably be the best. In his view, mining is not a safe business. Materials in general are very, very volatile. Any time you buy one of these, you have to think where commodity prices are going. Currently he has a pretty cautious view overall on-base materials. This one is trading at the bottom of its range and thinks the dividend should be pretty safe.

The problem is that they are capital constrained. Fort Hills will suck up almost all of their free cash flow. Moved out of it a while ago and into First Quantum.

Technically, the chart is not looking too good. It is testing a fairly important long-term support level. Clearly underperforming the Canadian market. Well below its 20 day moving average. Coal stocks in general are not doing well and there’s no reason to believe that there is going to be a recovery shortly. Does have some positive things coming up later in the year. It’s a major zinc producer and zinc prices are looking pretty good and looking for a recovery later this year. Seasonally the stock does well from around October right through until at least the end of the year.

(A Top Pick July 4/13. Up 6.3%.) This has oil, coal, zinc and copper. 4% dividend yield. The bad news is that it has metallurgical coal which is hitting new lows on concerns on China. Copper is not doing well but zinc is hitting new highs.

Iron ore prices have gone below their costs and if that doesn’t change, and you are looking at break-even to marginal losses. $21-$22 might be an entry point. He is mildly interested right now, but would be more interested if it were to pull back another 10%.

Coming down to $21 support level. Is in a trading position. If you feel comfortable at the $21 it's ok, but get out if it goes to $30.

Copper has a good chance of breaking down through $3 and if it does, all these copper stocks are going to break heavily. You should watch the Copper ETF (COPX-N) which has a lot of copper names and if it starts to break be wary. This is a fine company, and what they do, they do very well. They are in a sector right now that he is not remotely interested in and may not be for years. Doesn’t feel demand in China is going to be there for a number of years. He is biased against having a full position in this company at this time.

Great company but it needs a rebound in commodity prices. Timing of that is really hard to judge. It depends on US recovery and a lot on Asian growth. Can be very volatile. Doesn’t think you will go wrong buying in the low $20’s as long as you are patient. It could be a 3-5 years story. We may not get another super cycle, but at some point, it will be able to crank up production and get better prices.

A reasonably priced stock. They have very good assets. Seen some improvement in their balance sheet recently. He is more of a buyer than a seller today.

Key is China growth. He always looks for big problems and commodities are a place to look at. Thinks this is a good opportunity.

It is probably troughed out. There is probably no rush, but with a long term horizon you could start nibbling. This is her only base metals play. She is watching it closely for the Chinese demand to grow in which case she will increase her weight in this name.