Q: Hello
Teck resources seems to have been headed down for quite a while
Did it get too expensive and sold off?
Is there something else weighing on this company more than tariff and recession fears?
They can sell to anyone in the world do not sure why tariffs are a big issue
Thanks
Teck resources seems to have been headed down for quite a while
Did it get too expensive and sold off?
Is there something else weighing on this company more than tariff and recession fears?
They can sell to anyone in the world do not sure why tariffs are a big issue
Thanks
5i Research Answer:
Last week, Trump indicated that copper tariffs could be coming in 'weeks', not 'months', so tariffs are certainly a factor here. Yes, it can sell elsewhere, but we think major concern on the world economy is also driving sentiment here. The US has gone from close to 5% GDP growth to probably negative in three or four months. The 'off the cliff' move has been one of the sharpest we have ever seen. But TECK is in good shape. It is now debt free, cheap, and it produces huge free cash flow. Earnings growth is still very much expected this year and next.