Q: Hi 5i,
My portfolio does not have any meaningful allocation in the basic materials sector. Given the recent drop in equities (and possible future declines) was looking to add some resource stocks. CS and TECK.B in the copper sector looked interesting with the data centre/ chip boom underway.
What are your thoughts on these companies and is there a preference? What would you consider to be a good entry price in the potential market dips to come?
Would also appreciate any other resource stock ideas you might have in this current market.(Aside from Nutrien I know your a fan of and I already own.)
I'm not averse to risk and looking to hold at least 5+ years.
Thank you in advance.
Greg C.
My portfolio does not have any meaningful allocation in the basic materials sector. Given the recent drop in equities (and possible future declines) was looking to add some resource stocks. CS and TECK.B in the copper sector looked interesting with the data centre/ chip boom underway.
What are your thoughts on these companies and is there a preference? What would you consider to be a good entry price in the potential market dips to come?
Would also appreciate any other resource stock ideas you might have in this current market.(Aside from Nutrien I know your a fan of and I already own.)
I'm not averse to risk and looking to hold at least 5+ years.
Thank you in advance.
Greg C.
5i Research Answer:
We would be comfortable buying TECK.B in the $55 to $56 range and CS in the $7.60 range for copper exposure. Both are good companies with decent prospects and leverage to the metal. We would lean to TECK on size and business diversity. LUN also looks good for metals. The materials sector also includes golds and we think AEM, FNV and WPM look good there. Lumber will likely be hurt by tariffs but we think SJ looks good with lumber only a part of its business.