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

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.

Their last report was not that positive and he is re-examining his position. The coal side looks a little bit soft. Copper seems to be holding up all right.

Has had a good move off the bottom, partly because of the better markets generally due to improving growth in China. Still likes it. He is looking at averaging down. Longer-term, China is going to need exports from Canada of coal and copper and this company is in a leading position to provide it

Chart shows a head and shoulders pattern. Took off very well and now it has come back to the top of that trading range. This is a classic opportunity to Buy the stock. Seasonably it will probably run right through until the end of May.

Mostly about coal right now and coal is mostly about China. Understands the Chinese have the upper hand right now because there is a lot of coal in inventory. They are a price maker rather than a price taker. This is why this company is suffering. He is pulling away from materials in general.

Is in the right space – met coal and copper. They delivered decent earnings yesterday but the market sold off. There was talk of them acquiring and if they do it is an opportune time.

Short term price moves are hard to forecast. Pullback on the earnings forecast is hard to predict the outcome of. Most recent releases from China indicate TCK is well positioned. If you have a 1-3 year time horizon then it is good value here. Buy now and enjoy the 2.6% dividend yield.

(Market Call Minute.) He is shorting this one.

Owns BHP-N, which is very, very diverse with an emphasis on iron ore, which he looks. Not as big a fan of TCK, whose coal goes into steel.

Good name and definitely something worth having in the portfolio but you don’t need to be aggressive right now. You can wait 3 or 4 months or even as much as 6. Most people are forecasting global growth and particularly US growth as picking up in the 2^nd half of the year.

Loves the company but doesn’t think it is the right time for it. There are better days ahead for them. China is increasing steel production and looking for coal. Doesn’t see any big impetus that will move this stock higher.