Teck Resources Ltd ($TECK) is no loser

Bill Cara

Interesting article on $TECK: “Hedge fund pushes Teck Resources to dump oil and coal, replace CEO”

https://seekingalpha.com/news/3567438-hedge-fund-pushes-teck-resources-to-dump-oil-and-coal-replace-ceo

If Teck had a pipeline to move the heavy oil through BC and on its way to China and India, that massive project would be a moneymaker.

If and when the huge infrastructure development programs of Canada, the US, China, and India kick in, then 45% of Teck’s revenue from coking (steelmaking) coal would be an even bigger moneymaker.

Their base metal operations in copper and zinc will do very well as the global economy gets back on track.

This “activist” fund manager in Australia has picked an economic catastrophe to point investors to TECK as if this is a terribly managed company. CEO Don Lindsay is a terrific manager. The Aussie couldn’t lift Lindsay’s briefcase.

https://www.teck.com/about/board-of-directors/donald-r.-lindsay

FD: I hold a 4.87% portfolio weighting at Aragon and 5.37% weighting at CPM. I am a bit underwater in each, but not in the least concerned. Teck is the superior mining company in Canada and I have toured its main smelter in Trail BC. I know the company.

But, I do agree with the Aussie that the TECK dual share structure — the A shares are only listed in Canada — is bad. I dislike them with a passion.

This chart reflects only that when the commodity prices fluctuate so too does the stock price. The line is my average cost base, which is about US$10.65. I think that within 24-30 months, TECK will triple in price based on higher commodity prices and economic demand than what is the case today.

https://tvc-invdn-com.akamaized.net/data/tvc_3fdb8ee6d2182e275b8e3d5e1486c5da.png


Like to give your opinion? Join our Community Discussion