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

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.

Well diversified company. Shied away from base metals for some time because of Chinese and global economies. Sees precious metals as money alternatives. The Chinese economy has had credit issues. The shadow banking is causing him concern.

Doesn’t like the space they are in. For the last number of years it has been going down but it looks like we are making a bottom. We could buy at either of the last two lows last June and January as it builds a base.

China will continue to demand copper and zinc. It is a good 2 to 3 year buy here.

With the selloff, this is the correct time to own this stock. He is a little bit uncertain about the current environment such as China and what is going to happen there. If that rolls off, that would really hurt this company. He has this in his watch list although he prefers Capstone (CS-T), which has more upside and is a pure play copper and have made some acquisitions in the US.

Sold half his position in Manulife (MFC-T) and moved into this. What you think of this for a 3-5 years view? In a 3-5 year horizon, both companies are quality companies so he doesn’t have a clear preference for this move. In the short term, Tech is in a sort of a holding pattern because of their main commodity of metallurgical coal of which the big customer is China. China is going through a bit of a transition right now, which will take time. Growth will be reasonable, but not anything to write home about. This is in a short-term catalyst. You might get a better sense of direction in the latter half of the year.