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

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.

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.