TSX:TECK.A - Post by User
Comment by
49ANDFREEon Apr 30, 2020 11:43pm
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Post# 30974606
RE:RE:RE:RE:Hedge fund pushing for major changes at Teck
RE:RE:RE:RE:Hedge fund pushing for major changes at TeckBSdetector2016 wrote: Look at the chart; it's a complete dog. Ask yourself why? Oh, and bye the way, Mr. Market is always right.
If you believe that the commodies that Teck mines for will stay depressed for a very long time (measured in many, many years), then stock price will hover in this area. On the other hand , if you beleive that commodity prices will eventually recover to their historical median prices (in particular, coal and copper) then the stock price will significantly rise from here. I am in the latter camp. I am also in the camp that Teck has world class long-life assets, ample liquidity and a strong balance sheet that makes it a survivor until commodity prices recover. This story has been played out in prior years and I see no reason why this time is any different ... albeit there is more uncertainty with how long it will take for the world economy to recover from COVID. A bonus would be the announcemnet of significant infrastructure stimulus from differnt part of the world. I think China will do so in the next few months and I am hopeful the US will follow suit with an infrastructure program of their own.