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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (78259)	2/27/2020 9:15:01 AM
From: Goose94	Read Replies (1) \| Respond to of 203399

Teck Resources (TECK.B-T) Bottom-fish? TECK.B been beaten up so badly in recent months that they now appear to be undervalued relative to the prices of the commodities the company produces. Volatile markets this week have only intensified the divergence. As a large diversified miner, Teck is indicative of a market sector hit hard by fears the coronavirus will take a significant bite out of Asian demand for raw materials. However, it is also in an industry set to benefit most from expectations of a global economic snap-back in the latter half of 2020. A decline in copper prices has reduced sales forecasts for Teck and has been a significant driver of weakness in the stock price. The Chinese economy consumes 35 per cent of the world's copper production, and as economic activity in China stalled because of the coronavirus, expectations for copper demand also fell. Teck, of course, has been in the headlines this week for reasons not reflected in the chart, after abandoning a planned $20-billion-plus investment in the oil sands. RBC analyst Sam Crittenden is optimistic about Teck's medium-term outlook, saying the sell-off appears to be "an overreaction." Scott Barlow