FYI
Inv Reporter refreshes Teck Resources buy
Teck Resources Ltd (C:TCK)
Shares Issued 566,794,741
Last Close TCK.B 1/30/2015 $16.45
Friday January 30 2015 - In the News
The Investment Reporter, in its Jan. 23, 2015, issue, refreshes its buy of Teck Resources Ltd., recently $16.17. The Reporter said buy 26 times from March 3, 1995, to Nov. 7, 2014, at prices ranging from $9 to $85.30 (the stock split 2 for 1 on May 3, 2007). A $1,000 investment for each of the 26 buys is now worth $32,420. The diversified miner's third-quarter profits were hurt by lower commodity prices, and lower sales volumes of steel-making coal, copper and zinc. The plummeting price of oil could also force Teck's partners to delay the Fort Hills oil sands project. Even so, the stock remains a buy. One positive factor is the lower Canadian dollar. Many of Teck's costs are in loonies, while its commodities sell in U.S. dollars. The company says that each one-cent drop in the loonie adds $60-million to its underlying earnings over one year. Another plus is its effective cost-cutting program. Teck expects to earn $1.19 a share in 2015, up from estimated earnings of 81 cents a share in 2014. This year's expected EPS exceeds Teck's dividend of 90 cents a share, which offers a yield of 5.6 per cent. Teck remains a buy for patient investors seeking attractive dividends while waiting for price gains.
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