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Base metal stocks have been hammered on China's weakening outlook, and Dundee Securities thinks...

Base metal stocks have been hammered on China's weakening outlook, and Dundee Securities thinks there's worse to come, as another 15% drop in prices would cause "significant" distress for many miners. The firm downgraded 17 of them today, including Thompson Creek (TC) and HudBay (HBM), and upgraded only Teck Resources (TCK), to Buy thanks to its strong balance sheet as proof it can weather the storm.
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Comments (9)
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    I predicted more than a month ago that TCK would trade under $20 - touched $19.98 today. They are perhaps better prepared than others due to diversification, but still will experience significant headwinds in the met coal space and other base metals. Expect even better entry points to come - TCK could trade south to $15.
    8 Jul 2013, 06:12 PM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3570) | Send Message
     
    Why 15? why not 17.50 or 10,or 5?
    8 Jul 2013, 06:21 PM Reply Like
  • Jrookie
    , contributor
    Comments (76) | Send Message
     
    I guess they think there needs to be more blood in the street through more bankruptcies, reduction of inventory and consolation before it makes sense. Based on the material company's very low prices the global economy must be going into the tank. I'm not had much luck as a market timer but value is in the "eyes of the beholder" and I've started nibbling.
    8 Jul 2013, 06:22 PM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3570) | Send Message
     
    Jrookie
    -I'm with you,I'm long TCK and expect to add more eventually.

     

    The survivors will be the low cost producers, but first we need to see a few bankruptcies to narrow the field a bit.
    8 Jul 2013, 07:14 PM Reply Like
  • JackForgosh
    , contributor
    Comments (4) | Send Message
     
    Bankruptcies... or acquisitions!!! At some point the distressed will be bought.
    9 Jul 2013, 09:14 AM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3570) | Send Message
     
    Yes,but my point was that there needs to be a reduction in supply so prices can stabilize or even increase
    9 Jul 2013, 10:07 AM Reply Like
  • The Patriot
    , contributor
    Comments (352) | Send Message
     
    Thinning of the herd is a good thing for the longer term investor.
    One cant time the top or the bottom - just try to get close.
    8 Jul 2013, 07:17 PM Reply Like
  • john001
    , contributor
    Comments (921) | Send Message
     
    Lets just hope that teck management DOES NOT:

     

    1] invest more in their oilsands project until the keystone pipeline gets approved

     

    2] acquire any interest in iron ore co.
    8 Jul 2013, 08:33 PM Reply Like
  • nemonemo
    , contributor
    Comments (334) | Send Message
     
    Had TCK ride back from $4 to $25 in just 3-4 years. ANR would follow similar pattern soon.
    8 Jul 2013, 09:50 PM Reply Like
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