Nov. 26 is when you want to enter that sector.  He would wait because it is in a downward trend.  It has negative momentum.

It's late cycle for TECK and related minerals  companies. He owns very little in this space because he doesn't see upside. TECK itself is a good company.

He is very neutral right now, but would become a buyer in the $20 range. There is risk to a global China tariff war.  

(A Top Pick June 27/17 Up 52%) The commodity cycle has come back and the dividend is great.  Still a cheap stock relative to its US peers.  At some point they will buy more, if the share price drops.  Copper is short and the company is making good cash flow as global demand continues to grow in India and China. 

Canada's go-to mining stock and a relatively stable one. It has survived a rough period of acqusition/heavy leverage/stock sell-off. Market sentiment towards mining overall remains weak (and he prefers the oil sector), so he holds little mining.

He's between a buy and hold. The biggest headwind for commodities has been the U.S. dollar which he expects to peak soon then decline. Metallurgical coal prices are hanging in better. Teck has used the m-coal boom of the last few years to pay down their debt. Now, their balance sheet is strong and they have decent cash flow. This is one of the better stories in large-cap materials stocks.

This is the best mining company in Canada to be in because most of its assets are in North America. This provides relative political stability. The problem is that commodity prices are not currently doing well, and investors should only want to own miners when their commodities are going up or stable, or when the prices are in the pits and people are giving the stocks away.

Mining companies are difficult.  There is going to be high demand for it.  If he was looking at a mining company this is the one he would look at.

There has been a tail wind in the commodity sector as of late.  They have done a great job to deleverage their business.  As China slows down this could cause some issues.  It is fairly valued here.

The sector has been consolidating, but the basic materials should participate in the next move higher.  They have a great collection of assets to participate in the next move up.  He would first like to see a move higher before jumping in, particularly in the base metal prices.  

You have to wait a while like 3-5 years to see how trade patterns will shake out. This is being--and will be--impacted by tariffs and trade wars. Commodities in general are entering a volatile period. Long-term, Teck is a good company
and has improved over the years. They're well-diversified across copper and coal.

Is the metal run over? Full-scale tariff war will make the world economy and the metals suffer. Don’t want to be in metals if there’s a recession in 2019. Has a big coal component, which world is moving away from. Reasonably priced, but not a lot of upside. (Analysts’ price target is $42.24.)

He has owned this twice and they have traded it poorly both times, he says. It is a great resource company when the underlying commodity prices are doing well. Unfortunately copper is now at a 9 month low and coal could be being impacted by the trade concerns. Zinc is at a 52 week low, too. (Analysts’ price target is $32)

The problem lies with China. He doesn’t know what is going on with China. The market is pricing the risk of a recession next month. If that doesn’t happen, the stock will fly.

The company has gone from simply a coal producer and then to a metallurgical coal producer and now by Q4 Fort Hills will come on stream with copper, coal and energy.  Nice transformation in the company.  There is a hiccup in all the commodities today.  The 10 year bond is looking like it will break 290.  He is surprised how well the market is behaving today.  He would be a buyer on a pull back.

Has a cup-and-handle chart. Buyers are willing to pay top prices--they're confident in this stock. However, sellers aren't in a rush to sell. A very bullish chart that should continue to go higher.

(A Top Pick May 30, 2017. Up 36%). Despite their problems, oil companies and mining companies still produce a lot of cash. When things go slower, these companies stop investing (lower CAPEX) and their free cash flow goes up more. He anticipated last year that with all that free cash flow, people would start buying the stock. This company has had a good run this year, but he expects the price to keep rising, so he is still long. Some of the other commodities will not do as well in the future, but he think zinc has life left.

Question: When the company reported earnings today, why did it trade up and then dropped significantly. Answer: This type of action often reflects reactions to the conference call. He did not listen to the conference call today. The published reports indicate that it had a pretty good quarter. This is a well-run company with a diversified set of resource plays in Canada. It has a strong balance sheet and trades at a good multiple. If you like that kind of business, this is a good company.

It seems too expensive today – he would have preferred to own it at $25.  From a risk-reward perspective he would look elsewhere.  He owns Cameco (CCO-T) instead as he prefers companies out of favour. 

Sees an increase in the share price. Likes this one. Copper has had a hell of a year. Teck is well-diversified and also a good play in the Oil Sands. Has a $42 target. A good way to start playing the base metals. Really likes it for its diversification. 7x foward earnings.

Benefitted a lot from the surprise high coking coal price, resulting in strong levels of cash flow. He doesn't see a collapse in this stock, but wouldn't pursue it aggressively. Copper price has been slipping due to worries about global growth. He doesn't see a big rebound here. They might raise their dividend of 0.6%. 7x forward earnings.

Technically he thinks key support near $28 must hold. He thinks we are in an up channel presently, but that would end if it fails to hold key support. 

He says this is a buy.  He would own this for the long term.  Coal is not going away according to President Trump.  They will be spending $2 billion in capital plays and it trades at multiples that are discount to the peer group.  An explosion, or pressure event, was rumoured to cut their coal production but not as much as the 87-89% the market expected at the specific project.

He is concerned about commodity stocks getting obliterated if a recession comes.  He would be very cautious trading it here, maybe buying some dips.

It is starting to go back up.  Met coal prices are settling in.  Zinc is at a multiyear high.  Copper looks to be the commodity of the next few years.  All their areas are looking bullish so the stock should inch higher.

He likes it. Very volatile. Could be extreme acceleration above the 38 dollars level. If the market cannot handle higher rates in these space is where you will see it first. (Analysts’ price target is $41)

Doesn’t own it. With worldwide growth, it hit a run. If it pulls back, they would take a look at it. 

You would think with a global expansion for a year or so that commodity stocks would be doing better.  They are not just yet.  The focus is industrials and technology.  If the expansion continues you should see scarcity in resources and pries should improve.