TSX:TECK.A - Post by User
Comment by
courtney10on Mar 24, 2011 10:01am
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Post# 18333469
RE: RE: RE: RE: teck announces
RE: RE: RE: RE: teck announcesGuidance means very little to the big boys. They do there own due diligence and come up with there own numbers.
Guidance is a way to scare the little people. Bottom line here is the price of commodities and the rate of growth over the mid - long run. If in 3 yrs from now, annual growth is not substantial, then you have a problem owning this stock. In 2011, assuming commodity prices don't fall from the sky, TCK will earn over $4.5 billion in operating cash flow. Cash flow/share should be around $7-8
Currently trading at just over 7 times cash flow, pretty cheap i would say. Not sure about this one ever being taken out, cannot see the CDN gov't allowing this to happen. However, with the deep pockets of the Chinese, (17% present ownership,) I can see these guys buying up some assets.
IMHO