Teck Resources Ord Shs Class A T.TECK.A

Will TCK test '09 lows?

[pissed_investor]

It is beginning to look like it.  But I doubt the recovery in the share price will be as dramatic.  The financial crisis was a once-in-a-lifetime type of event that was triggered not by fundementals like good old supply and demand, and the 'recovery' was fueled in large part by a healthy appetite for growth in China.  Today, demand for base metals is weak and promises to be weak for an indefinite period of time as China shifts towards an economy based on consumer consumption rather than one striclty driven by export.  Supply is bloated as the super-majors maintain or even hike production to flush out the higher cost producers.  Those companies with highly leveraged balanced sheets may have to ultimately seek out creditor protection if they have failed to prepare for this extended period of dire straits.  I am beginning to worry that TCK may have to go this route.