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

Sentiment is just completely terrible with commodities and now commodity prices are rolling over, which is not helping. There is too much concern about China only growing 7.7%.

It has no momentum as with the entire materials space. It is cheap and offers the best growth. Copper, good exposure to Met. Coal. It is attractively priced.

Had a nice little bounce today because of the inflation numbers that came out of China (weaker than anticipated). This country is the biggest consumer of copper and of met coal. Stock is very attractive at these levels longer-term. Will have to see continued economic growth, particularly in China and emerging markets.

He owns First Quantum. If TCK broke below $27 range it would likely go lower. Otherwise you have some pretty good upside.

(A Top Pick May 17/12. Down 4.46%.) Has 2 commodities that are really in the doghouse, copper and met coal. Some of the copper projects that were expected to come online are starting to come online. Short-term, it could go 5% lower but this is a good time to get in.

It has some support around $27. We want to see it bounce off of that and looks like it is trying to. Use momentum indicators.

We are in accumulation mode, but the reality is that China is not going to grow like it did the last decade. You want to buy it closer to lows and to support. We have not seen support established here.

BHP Billiton (BHP-N) just signed a coal contract with Nippon Steel and it was a lot lower than anyone thought it was going to be. That has really impacted this stock. Has always liked this one very much but doesn’t see any sense in buying it.

It is a call on met. coal and copper. Thinks you will get a re-acceleration of China in the second half of the year.

Sort of watching this. One of the things that worries him a little bit right now is that they have been rumoured as a possible acquirer of Rio Tinto’s (RIO-N) stake in Labrador Iron Ore. The buyer usually gets punished in acquisitions, particularly when there is a commodity factor at play.

Faces a number of different hurdles right now. Stuck in the crosswinds of concerns about China, weakness in copper prices as well as bulk material pricing. They own one of the highest quality coking coal reserves, which is required to make steel. Because it is in the bulk metals universe, it got hit as well. Before he got comfortable with this, he would need to know the risks if they were going to get involved in making a big acquisition.

Very well run. Zinc, copper and a major producer of coal. This one depends on coal in the steel cycle. It is obviously a very long life, interesting, rich situation. Could go lower.

Possibility of increasing dividend but right now they are concentrating on capital allocation. Has been particularly hard hit. He has been looking at it and could begin to accumulate it here. The downside is relatively limited compared to the upside potential.

China coming in for a soft or hard landing? TCK’s biggest assets are copper and coal. Their level of inventories are high and demand is waning. China is not going to have a hard landing; they will engineer a soft landing as they have in the past. They will probably only grow at 5-6%. In terms of infrastructure build, it just has to cool. TCK will be a range trader. If it goes to 52 week lows then accumulate. You have to be a trader. KOL in the US is the whole coal sector and you want to watch it to see what the sector is doing.

Came out with pretty good earnings for the last quarter but they are very coal weighted and copper centric and both have been under pressure for some time. This is a name that ultimately is a core holding for most people but expects it to be challenged over the next couple of quarters.