Q: Greetings 5i, I need to raise some cash and looking at either Teck or Nutrien. Based on medium term prospects which one would you sell? Would appreciate if you can provide a brief explanation in terms of reasons to keep vs sell for each. Thank you.
5i Research Answer:
Both have cyclical risks, but NTR is cheaper on valuation, has a much higher yield, and is doing much better (more positive momentum). One could argue that fertilizer should be less cyclical than metals. One could argue for TECK as it has better expected short term growth and a better balance sheet, but we are taking cues from the stocks on this one a little bit. NTR has exposure to China though contracts which could be good or bad, depending on economic recovery (or not) there.