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

(Top Pick Jun 27/12, Down 24.93%) Liked it then and likes it now. In Canada there is an utter abandonment of resources. Prices of their commodities are as low as they can get. The market is so short term oriented these days. You have to look at production and cost curves. This is a low cost producer and will play out well. Sticking with it. Capital discipline. They have increased the dividend. Over 4%. Balance sheet is fixed. Commodity prices are low. Few companies can mine the commodity at $125 but it is possible for this one.

(Market Call Minute.) One of his larger holdings. Got beaten up because of the dual copper and coal and exposure. However, global economy continues to grow and at some point the base and precious metal sector will have to participate.

He is staying clear and far away from anything that is resource, except for oil stocks. Used to be bullish on China but the thesis has changed and he has changed his opinion and sold his holdings.

Very cheap but it is one of those bellwethers for resources. Doesn’t think you are going to see a bullish case in the next 3-4 months for natural resources.

Not his favourite stock. None of the resources they produce turn him on too much. Its main export business is to China. Doesn’t find resources all that attractive and there is probably further downside.

Doesn’t like the resource space. Rising costs and slowing growth in China. One of the larger ways to play base metals. He does not have a single base metal company.

Southern Copper (SCCO-N) or Teck Resources (TCK.B-T)? Expect there is some support at around $30 but it doesn’t look all that good to him.

Likes this one longer-term. Coal is a bit of a short-term problem. Copper is not great either, but is closer to a bottom. Expects it could go down another couple of dollars. $20 would be a great entry point and $22 would be a point where he would look at this.

You would think coal would be doing better but it isn’t and until there is a catalyst for the stock, wait. If there is a back-off then perhaps get in for a day trade. The chart has not done anything bullish.

Recently met with management and he doesn’t think they will take a run at the Vale’s Sudbury operations again. They feel the street doesn’t want them to do a lot of big acquisitions at this time. His concern with this company in the short term is metallurgical coal prices. Loves the copper side.

His model price is $47.57, a 66% differential. Feels it could trade up to the $33 level. The issue is what is happening to commodity prices. He worries about what is going on over in China. Thinks there is a slowdown happening. No warmth on this one.

(A Top Pick May 17/12. Down 3.77%.) Had a huge run to $38 and has gone all the way back down to the high $20’s. They are getting painted with the “slowdown in China” brush. Expect they will continue to reap the benefits from China’s growth.

(Market Call Minute) Too copper and coal linked and both are under pressure.

Copper is down 9 or 10% in the last few weeks. It's a good long term company. But the greater growth in China has slowed. It has a good divident of 3%, but don't expect much growth in the next while.

Material stock – avoid them. Just been dismal. Negative long term stock. Sell on strength if you are in it. Buy in fall.