Teck Resources Ltd. (B)

TECK.B-T

They are really reliant on commodity prices. The global economy has been slowing leading to lower commodity prices. She would not be buying here, until the underlying commodity price improves.

Long-term, we're in secular bull market, but a secular bear market for commodities. He does like copper, though, because the smart money has been buying it (for the past two weeks) and copper correlates well with China. So, anything to do with China has taken a sharp drop. Lately, the copper price is trying to form a tradeable low, but Trump's tweets can suddenly change things. This is a trade, not a long-term hold (though the smart money is long).

They owned it, but got a technical sell on it. The declines can often be really severe. So they sold and switched into gold.

His go-to stock if he was buying base metals. Eventually, commodities will go through the roof, so now is a good time to be adding, but don't go overweight. It's a good company, but you will wait.

The chart doesn't look great. Moving averages are moving lower. Not good. Seasonality is end of the year into the new, late-November to mid-February. Revenue growth is healthy though.

Likes it, but concerned right now because it's a world economy stock. Not the time to step in. If you own it, hold. One of the best managed Canadian mining companies. If you're looking ahead to the 2020s, you could buy it on a dip.

(A Top Pick Jan 10/19, Down 5%) Volatile. Big move down from mid-April to end-May due to trade issues and the U.S. dollar. It's been choppy and rangebound since 2016, but it could breakout to $45. You are paid to wait.

He firmly believes you want to own commodity stocks when the underlying commodity prices are holding their value. Right now, Teck's underlying commodities remain under pressure. He would stay away until copper and zinc prices improve. (Analysts’ price target is $40.00)

He is not a resource bull normally, but he likes restructuring themes. The base metals area has been unloved and under owned for a long time. Lows on the sector have been increasing since 2015. This group is set up to do quite well. He prefers RIO-T. The risk reward is very, very good. TECH.B-T should participate in this camp. (Analysts’ price target is $40.00)

(A Top Pick Mar 22/19, Down 6%) One of the best mining stocks. It fell to $24 in October, and recently returned to February lows around $27. The lows are higher, which is reassuring. The deep cyclical stocks aren't moving these days. If it falls below $28, then it will likely return to $26. TECK really ramped up in April during the China-US trade talks, so until there's clarity on those talks, TECK won't go anywhere.

Generates $4 billion in cash flow and just received an investment grade credit rating. It will survive a financial Armageddon. Their latest copper mine project will time the rise in copper prices perfectly he feels. Yield 0.71% (Analysts’ price target is $39.84)

(A Top Pick Apr 09/19, Down 12%) His copper play. The longer-term chart looks good. Cyclical commodities should do well this year. He will re-evaluate this stock in June. All copper names have been slammed during this trade war; copper is a big proxy for China.

China issues? A cyclical stock for sure, so its tough to buy and hold. The balance sheet has been right sized as the debt has been reduced. They are cheap based on earnings. If you believe China trade issues will be resolved, you should continue to hold. (Analysts’ price target is $39.84)

Cyclical. Want to take profits. Optimal time is November - February. Between now and November, tends to trade negatively. Recently, materials production fell off. Inventories will have to be alleviated, so demand for materials is lower. Longer term, if it trades below $24, he doesn't want to be there.