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

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

High-quality stock in a bad place. It will certainly be a survivor in a downturn of commodities but all of their major commodities, including coal, copper and zinc are all facing tough times. This will work itself out as more money is not going to new mines. In a couple of years, there will be a deficit in copper. This hinges on what your thought is on growth acceleration in Asia, China, specifically. Tough call. 3.7% dividend yield.

(Market Call Minute.) Probably a Buy, but if it sees the low $30s, it’s a Sell.

(A Top Pick Nov 1/12. Down 21.06%.) Sold his holdings. Resource stocks have underperformed this year. He is less bullish on the coal market than he was. The Fort Hills project was where he got out because all of their excess cash flow for the next 4-5 years is going to go into this development.

Has not owned since 2007/8 as they almost went bankrupt in ’09. Now he can’t get an idea of what copper and coal prices will be. It is hard to forecast profitability.

Global growth is returning, but what if it is consumer lead growth and not construction led growth. China is making steel just to make steel, not because of global demand. He has stayed away.

Has some leverage in the oil space now. Buy given the outlook on global economies. Demand for Copper and Met Coal will pick up from here. Dividend is safe.

Has had a very good run. Added to his holdings in the summer when it got down to the low $20’s. Likes this very much over the next 2-3 years. Have good, longer-term growth with participation in Fort Hills. You are basically buying exposure to metallurgical coal and copper. The outlook for both is very good. 3.3% dividend yield.

Copper, iron, coal are not a great combination for the next couple of years. Demand will remain tepid. It can be traded in a range. Buy near this year’s lows and then the 29.60 area will be a resistance area.

You could trim some off, but the leaders in the industry just broke out. If Asia expands then these companies will all do well. There will be a decent run at these stocks this winter.

(Top Pick Oct 4/12, Down 1.85%) Mining sector has been decimated. Commodity prices are at lows, not highs. TCK has been the best performing in a bad sector. This is a low cost producer, particularly in Met Coal. TCK has good assets and a great balance sheet. Will eventually pay you a lot of money and pay a dividend while you wait.

Highly cyclical. Resource producers are having a hard time getting their prices. Stay away from resource companies.

This is one of his favourite holdings in mining. Diversified with exposure to both copper and met coal and they also have some oil sand leases with their interest in the Fort Hills. This is tied to the global economy. The Chinas of the world continue to grow. They are growing at 7.5% per year, compared to 10% before, however it is still absolute growth.

Well-run company and has some very good assets. If you want to make a decision about this company, you have to decide whether China’s economy has bottomed. China’s last production numbers were a little better.

There are reports that they may push further into the oil sands. This is the only base metal that he holds. It is diversified. For a long-term investment, he feels it is a great one. His company has this as a Neutral with a $32 target.