TCK

Teck Res Cl B SV

Industrial/Transportation


Presented:02/18/2015
Price:CA$19.53
Cap:$9.06B
Current Price:CA$68.04
Cap:$29.50B

Presented

Date02/18/2015
PriceCA$19.53
Market Cap$9.06B
Ent Value$14.40B
P/E Ratio31.16x
Book ValueCA$32.30
Div YieldN/A
Shares O/S576.20M
Ave Daily Vol2,900,000
Short IntN/A

Current

PriceCA$68.04
Market Cap$29.50B
Teck Resources Limited explores for, develops, and produces natural resources in the Americas, Asia Pacific, Europe, and Africa. Its principal products include copper, including copper concentrates and cathode copper; steelmaking coal; and refined zinc and zinc concentrates. The company also produces lead, molybdenum, germanium, indium, cadmium; gold and silver; industrial chemicals; and fertilizers and sulphur products, as well as electrical power. In addition, it holds interest in oil sands projects in the Athabasca region of Alberta; and owns or has interests in 13 mines in Canada, the United States, Chile, and Peru, as well as operates a metallurgical complex. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. Teck Resources Limited was founded in 1906 and is headquartered in Vancouver, Canada.

Publicly traded companies mentioned herein: Suncor Energy Inc (SU), Teck Resources Ltd (TCK / TCK/B CN)

Highlights

The presenter is short shares of Canadian steelmaking/ coking coal producer Teck Resources, which is traded in the US and Canada (TCK and TCK/B CN, respectively). In addition to coking coal (~1/3 of revenue), TCK is a copper and zinc producer and has a material stake in the Fort Hills oil sands project (with Suncor). Global macro headwinds are pressuring every segment, yet shares have recently rallied from 12 to 20 (CAD) on nothing that is particularly fundamentally compelling. The entry point and risk/ reward appear to be attractive, as TCK/B CN could eventually be a single digit stock if the short thesis and presenter’s estimates prove to be accurate.

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Idea Discussion

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