Teck Resources (TCK-B.TO)

19999 Views 40 Replies 24 Participants Last post by A320, Dec 27, 2013

Robillard

Discussion Starter · May 8, 2009

Are there any lucky/speculative souls here who jumped in on this back in December or late February? They would have tripled or quadrupled their investment by now. It has certainly been quite a turnaround.

Teck's management has been aggressively selling assets in order to meet their short-term debt obligations. In addition, Teck's creditors have given the company a reprieve, allowing some short-dated debt obligations to be rolled over into longer term loans. The quasi-recovery in the corporate bond markets, particularly the market for junk, has helped. Teck recently rolled out a US$4 billion structured-note issue with 5, 7 and 10-year tranches (all with yields in the 11-12% range), which will allow them to pay off the big bridge loan they took on to buy Fording Coal Trust.

FYI, I don't own any Teck stock directly. I just think it's an interesting story for a company that looked like it was on the ropes 5-6 months ago after the prices of its major outputs sunk like rocks. Ha!

1 - 20 of 41 Posts

takingprofits

· #2 · May 8, 2009

We got lucky with this one. We bought it in December and were going to sell when things were at their darkest for Teck a couple of months later - but didn't get around to it. Then it started to rise, and rise, and rise

AshleyT

· #3 · May 8, 2009

We had a large position in TCK. I sold it on Wednesday for a small profit at 16.30. Unfortunately our ACB was 15.56, so no three-bagger for us. I was happy to get out with a gain. I don't how much legs this TCK rally will have, but to my eyes, there remains a lot of short term risk. Ultimately they should return to a robust profitable company paying a dividend, but I think it is going to take a few years of solid commodity prices to get them there. What will the share price do in the mean time?....I have no idea, but I didn't like the level of risk that remains on the table at TCK. I'll take a look again after they get their Fording debt under control.

spbrunner

· #4 · May 9, 2009

Teck Resources

I reviewed this company in November 2008 and thought this price went far to low. I do not usually buy resource stocks, but I also enjoy investing. I just bought 100 shares at $4.67. I plan to sell this soon. So, I was having some fun and I have made a bit of money at it.

Susan

-----------------
http://www.susanpbrunner.com/ -talking about Canadian Stocks

-------------

shepherd

· #5 · May 10, 2009

bought this just over 8, when the markets were rebounding, thought the banks would give them time, since they have enough on their plate, ie. bad loans, so they could roll out some of the debt.

however on the day it spiked sold at just over 9. painfull but thought they might annouce a major share issue. to reduce debt.

so only small gain, did sell $9 puts on the stock that look good, then again a small gain compared to just holding it.

thanks
shepherd

gibor365

· #6 · May 1, 2011

Any thoughts about TCK? or CBR?

Any thoughts about TCK? Was thinking to buy on pullback...or CBR?

andrewf

· #7 · May 1, 2011

The ETF?

CBR seems pretty good for generic commodity exposure with less exposure to idiot management. It remains to be seen how well their roll yield optimisation handles markets that aren't charging upward. If you compare it to TCK.B, though, it's remarkably steady gains (not to mention better return since the inception of CBR) with a lot less volatility. As for TCK, they may do well long-term as I would expect coal prices to remain high. China has a voracious appetite for the stuff, and coal demand in China and India ought to basically mirror economic growth.

Bighairybeast

· #8 · May 1, 2011

Being an equipment operator at Teck's Fording river mine I may not see the big picture fully, but I like what I see. After next week we should have a 5 yr contract signed and the greenhills mine being non union usually ends up just taking the same offer we get. So if our vote goes well and greenhills follows suit, all 5 coal mines in our area will be under contract for the next 4-5 yrs.

I have also seen large capital expenditures on two new large shovels and a bunch of new haul trucks. Most of the mines in our area have good long term plans for coal reserves.

The other positives I see are that Teck has been paying off its debt from the $14B Fording purchase at an accelerated pace. We have a good rail contract in place, coal prices are excellent, and Australia is still feeling effects of flooding. I also like Teck's involvment with Copper.

I'm a newbie investor but personally I like what I see and besides my employee share purchases I also have previous shares held in TFSA and just added 100 shares at $50.16 last week.

See less See more

gibor365

· #9 · May 1, 2011

I'm bullish on commodities for a long term and both CBR and TCK.B are different type of commodities. I was thinking to sell TCM - mostly molybdenum (who is very dissapointing last several months) and buy TCK.B or CBR....

Toronto.gal

· #10 · May 1, 2011

Like it and own it [TCK].

You missed a great buying opportunity not that long ago below $50 & have since rebounded nicely.

gibor365

· #11 · May 2, 2011

Toronto.gal said:
Like it and own it [TCK].

You missed a great buying opportunity not that long ago below $50 & have since rebounded nicely.

I know that I missed

in mid April bought MO (not bad 2.8% gain ) and Goldcorp... still TCK.B is about 20% below 52 w high...

I was just thinking to switch from TCM to TCK.B - both had pretty rough several months - more than 10% down, I just beleive that TCK.B has more chances to recover....

Toronto.gal , do you have any opinion on TCM?

Homerhomer

· #12 · May 2, 2011

gibor said:
I know that I missed

It's been below 50 twice in the last two months, and I won't be surprised if you will get more chances in the near future, it's violatile stock ;-)

I am in at 50 and missed the oportunity to get out at 54 as my initial target was a bit higher, next time I see 54 I will be out (getting closer to summer, QE ending in June, I am nervous ;-)

Toronto.gal

· #13 · May 3, 2011

gibor said:
Toronto.gal , do you have any opinion on TCM?

I don't follow that stock gibor; I did a while back, but was not interested back then, but might look into it again.

gibor365

· #14 · Nov 29, 2011

Tck.b

What do you think about going long TCK.B at current prices? It got pretty hard last several months, but looks like a solid company. Also they increased dividends 33%.

humble_pie

· #15 · Nov 29, 2011

gibor you want to know what i really think ... ? honestly ... ? candidly ... ?

ok you didn't ask for the honest & candid but i'll brashly mention anyhow.

i think that for a relatively small account - which you have told us you possess - your attention is spread out way too far all over the map. I think you keep wandering after every floozie who waves her dividend at you. I think you have some great Good Old Stuff in your portf - stuff like philip morris - but you're not being faithful enough. I think you could stick with the tried & the true & maybe top up your contributions to the gals you already know so well, instead of chasing after new flim & flam every single day.

so that's what i think

gibor365

· #16 · Nov 29, 2011

humble_pie said:
gibor you want to know what i really think ... ? honestly ... ? candidly ... ?

ok you didn't ask for the honest & candid but i'll brashly mention anyhow.

maybe you are right and I'm over -diversified. But portfolio is not too small, it used to be more than 300K (beginning of the year

).

I used to have TCK.B in spring, but I sold with a very small profit, also sold G.TO with small profit and TCM with loss. So, now I'm practically don't have any mining stocks except ETFs XMA and XIC (to some degree).

I'm trying to diversify and yes from tobacco I have PM and MO (but I don't want to buy more ,as it will be too much for this industry).
BCE, RCI, SJR, AT&T for telcos
ABT, JNJ, PG - for health
SU, COP, still some DAY - for oil
ZRE, XRE, PMZ.Un - REIT
All Canadian banks, + loser JPM
and ... covered calls stuff ZWB, HEX, HEE

Homerhomer

· #17 · Nov 29, 2011

gibor said:
I'm trying to diversify and yes from tobacco I have PM and MO (but I don't want to buy more ,as it will be too much for this industry).
BCE, RCI, SJR, AT&T for telcos
ABT, JNJ, PG - for health
SU, COP, still some DAY - for oil
ZRE, XRE, PMZ.Un - REIT
All Canadian banks, + loser JPM

If I may, you have fair number of companies yet you are still not diversified.

Two tobaccos, why not one tobacco and say KO or MCD.
You have 4 telcos but no utilities.
You have all Canadian banks, why? but no rails.
You have 3 health care but no industrials.......

I have no problem with 3 or 5 companies in the sam sector, but having this many companies in some sectors and at the same time not participating in other sectors at all seems strange.

I understand that many of the companies are priced at the premium recently, but still the set of companies you currently have seems flawed.

gibor365

· #18 · Nov 29, 2011

Homerhomer said:
I understand that many of the companies are priced at the premium recently, but still the set of companies you currently have seems flawed.

This is exactly why I don't have MCD or KO (too expensive), even though was considering PEP.

MO is not pure tobacco... like PM

For Utilities was watching UNS (had an order that didn't trigger), DUK, ENB - too expensive . Probably should've buy FTS on Friday

Industrials, was watching DOV and LMT, don't even know what are solid CDN industrals.

Rails: know only 2 stocks CP and CNR, both expensive and extremely small dividend less than 2% (even TCK has better one)

Also, after selling AAPL i don't have any IT (except INTC - my wife worked there and still has shares) and afraid to buy them.

Forgot to mention, when I opened discount brokarage account, my first buys were ETF: VTI, PRF, VEA, DBA, XMA, XIU, XIC, URA . I still hold them and hopefully getting exposure to industries I don't have stocks....

I'm very open and any comments are welcome

See less See more

humble_pie

· #19 · Nov 30, 2011

gibor i was going to say this is a bunch of well-preserved mares in the ageing-but-still-classy category ... some indeed have nice bones ...

and i was going to say there are too many in the herd, though, i counted 27 & some were duplicates as homer says ... how can one poor man look after 27 of these fillies even if they still have good legs ...

then all of a sudden you trotted out 8 more geldings which you said were etfs you had bought a while ago, making a total of 35 plus who knows what else is still left behind in your barn.

i for one don't believe anyone can keep up with news, charts, earnings, dividends for so many. It's self-defeating to own near-identicals like XIU, XIC & HEX, don't you think. Like, it's too many management decisions over very small increments of 35 or more different stocks.

an efficient portfolio of roughly 250k might have 10-15 equity positions plus a few GIC or laddered bond holdings, i think.

so perhaps instead of looking out every day for new conquests you might consider how to thin the existing herd & strengthen the bloodlines, if i may say such a thing.

as for teck B, i see that you already have exposure to the mining sector through XMA plus base metals & copper will follow resource stocks & energy in a broad sense, and you have plenty energy exposure right now. The resource sector is still at risk imho, there is no point rushing into it just because an individual miner is well off its highs.

See less See more

Toronto.gal

· #20 · Nov 30, 2011

humble_pie said:
then all of a sudden you trotted out 8 more geldings which you said were etfs you had bought a while ago, making a total of 35 plus who knows what else is still left behind in your barn.......so perhaps instead of looking out every day for new conquests you might consider how to thin the existing herd & strengthen the bloodlines, if i may say such a thing.

I laughed so hard; just brilliant writing/humour and I'm sure gibor will pay close attention because it was great advice!

1 - 20 of 41 Posts

This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.