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

A no-brainer for someone who wants to have a position in a resource company. Gives access to some of the best resources such as copper, coal and zinc. Very strong. Very reasonable valuation. Balance sheet is not stretched so it has some room to do an acquisition. China is a big driver of this and the data has been a little mixed. He is waiting for another quarter of earnings before buying more.

Hadn’t owned this since it almost went bankrupt back in 2008-2009. The CEO and the board are now much more careful with their money and now have a very strong balance sheet with secure dividends. Have 3 main commodities, metallurgical coal, copper and zinc which are all doing reasonably well. Stocks have all come off with the commodity stocks and he can’t say when they are going to start to turn but thinks they are good value here. Good yield.

Has a small position in this company. Seems to be basing out here. Last year was rough because of weak demand for copper and coal. She hasn’t added to her position. Trading below its NAV. Of all the base metal stocks, this is the one she would own. Strong balance sheet.

(Market Call Minute) Key is when you think Met Coal turns around – second half of this year, he thinks.

If you believe the China story long-term, which he does, this is a great time to get aboard, especially if you have a 2-3 year outlook. Had a bit of a rally since June.

There is a lot of uncertainty as to what is going on in emerging markets. If economic growth does not pick up, this company will get hurt. Copper has been going down and sideways over the year, which is questioning what is going to happen to the global economy. He would need to see a rebound in the price of copper before looking at this. Holds a little bit for some clients but is the only base metal stock that he owns.

(Market Call Minute.) Outside of cyclical rallies, he does not think the commodity cycle is in play at this time.

It is starting into a ‘W’ formation. It broke its trend line. About $32 is a very important level. Don’t get out at $39 because it will mean that it is starting into a new uptrend.

We have a developing bottom. It is forming a base. Buying pullbacks makes a lot of sense. If the low breaks then it will test the previous low. If you buy here you have to decide if you are willing to risk that much. The upside is a little more than the downside, but not 2:1 and that is where he decides the risk is worth it.

(Market Call Minute) Getting cheap, under book but desperately needs something to turn earnings around. Probably dead money.

We have had the steady decline since the rally, but we had a pivot point after which if it moves above $32 it confirms the down is over. It is not over yet. He would probably be an owner here. He likes copper stocks.

(Market Call Minute) Asian recovery story.

(Market Call Minute.) Sold his holdings but thinks it is coming back to a time when it might be a Buy.

Copper prices have picked up a bit. A little bit neutral on this and is still waiting. If you want to participate in a rise in base metals, this would be one of the companies you would be looking at.

(Market Call Minute) A little out of favour, tax loss selling.