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

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.

Pretty cautious in the short term on the resource sector. This one has very big businesses in coal and zinc and he is not super keen on either one of these areas right now. On any resource stock, first and foremost, you want to make a forecast of where you think the price of the commodity is going. He thinks prices are going to fall further in the next 6 months.

(Has a small Short position in this.) He doesn’t have a big exposure to mining as he is a bit worried about global growth. Data out of China has been less than stellar. He is worried about both coal and copper.

Copper outlook has deteriorated as well as the coal outlook. Well-run company but you can afford to wait before adding.

The focus is China. They need copper and they need coal. It will happen in the next 1-3 years.

On a fundamental basis this is good but China is slowing so steel is getting really impacted as well as hard-coke and coal. Prices are going down.