TSX:TECK.A - Post by User
Comment by
paljoeyon Jan 15, 2009 8:56am
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Post# 15705858
RE: Dry Bulk Shipping: Recent BDI Rise Is Hearteni
RE: Dry Bulk Shipping: Recent BDI Rise Is HearteniThis is indeed a positive sign , although the worst of the recession has yet to be seen.
The key question for Teck is whether its monstrous debt can be sustained, as right now it is tettering on the brink of default.
Credit markets remain very tight, so a major and early reversal of credit liquidity will be required for Teck to survive.
The shorts already see the trend and are ganging up.
There are many risk-free investments out there, that are cash based without the risky drag of debt.
GMN has $1.50 in cash, and trades at $0.75; ORV has $1 in cash, produces low cost gold and trades at 1/2 of its cash value; EUG has $110 million in cash and securities, as well as 25 % of a $2 billion gas storage facility while trading at just $0.45.
These are risk free, yet offer substantial upside on cash alone while GMN pays a dividend.