TSX:TECK.A - Post by User
Comment by
cartach13on Feb 05, 2008 12:08pm
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Post# 14319819
RE: S&P Issues Buy Recommendation
RE: S&P Issues Buy RecommendationAgree that Teck has nowhere to go but up but think it will also go down in the short term. I sold my shares yesterday at $36.90 at a good profit [could have sold for above that but had to be away from the computer and so put in an order with a limit price - should have been greedier]. The reason I sold is that I think that the 4th.Qtr. results won't be that good compared to previous ones. President and CEO has already warned in Dec. in a speech not to expect too much.The 3rd.Qtr. report back in Nov. also starts out with "Warns that strengthening Can.$ will have a significant effect on our cost base and operating profits in future". It also should be noted that LME zinc and copper prices which averaged $1.46/lb and $3.48/lb.in the 3rd.Qtr. respectively, were significantly lower in the 4th.Qtr. Lead prices were also down from an average of $1.43/lb. and lower Can./U.S.$ exchange rate continues to negatively impact revenues. These changes are some of the concerns I had which led me to decide to sell and wait and see. Based on today's price decline I have'nt made the wrong decision so far. In any case I'm content to wait until after the 4th.Qtr. report and will buy back on a good dip which I expect to happen because the price of Teck shares always recover. It makes me wonder again about the worth of some analyst's opinions and recommendations when they don't include anything about the short term and recommend an outright buy at this time just prior to release of the 4th. Qtr. results.