TSX:TECK.A - Post by User
Comment by
vascris15on Feb 06, 2014 3:04pm
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Post# 22180834
RE:is this stock undervalued
RE:is this stock undervalued Three top stock picks from Portfolio Management’s Norman Levine (RTGAM)
Norman Levine is managing director at Portfolio Management Corp. His focus is on North American large caps.
Top picks:
Teck Resources Ltd.
Teck is financially strong after its near-death experience in 2008. It is diversified with respect to its major commodities (coking coal, copper and zinc) and has mines throughout the Americas. It has a safe dividend yielding 3.6 per cent and no major debt maturities until 2017. There is excessive pessimism surrounding its major commodities but we believe the China slowdown is well incorporated into its share price. It is a major beneficiary of the decline of the Canadian dollar. The stock has underperformed for the last 3 years. The timing on purchase is difficult and the malaise could continue but commodities will not underperform forever. Eventually, the solution to low prices is low prices and Teck is a low-cost producer so it will be a survivor and winner.