teck resources
Suncor’s shares rose from $35 after it merged with Petro-Canada in August 2009 to a peak of $46 in March 2011. After that, the stock fell and stayed between $30 and $35 for most of the past three years. That’s mainly due to setbacks at its Alberta oil sands operations, which pushed up its operating costs and forced it to write down some of its projects.
The company has now solved many of these problems, which should improve its future earnings and cash flow....
The company has now solved many of these problems, which should improve its future earnings and cash flow....
CANADIAN PACIFIC RAILWAY LTD., $171.19, Toronto symbol CP, reported better-than-expected earnings this week, despite harsh winter weather that cut shipping volumes and slowed deliveries. In the three months ended March 31, 2014, CP’s earnings rose 17.1%, to $254 million from $217 million a year earlier. Per-share earnings increased at a slower pace of 16.1%, to $1.44 from $1.24, on more shares outstanding. That beat the consensus estimate of $1.41. Revenue rose 0.9%, to $1.51 billion from $1.50 billion. That’s mainly due to higher revenue from shipping consumer and industrial products (up 10.8%) and grain (up 4.1%). These gains offset declines in major areas like fertilizers (down 11.8%), automotive products (down 9.3%), forest products (down 9.4%) and coal (down 0.7%)....
CANADIAN PACIFIC RAILWAY LTD., $169.99, Toronto symbol CP, and CANADIAN NATIONAL RAILWAY CO., $61.98, Toronto symbol CNR, have had trouble shipping last year’s record grain harvest on the Prairies to Canada’s west coast due to bad winter weather. To help clear the backlog, Ottawa now plans to fine CP and CN if they fail to ship a minimum amount of grain per day. The railways already plan to increase shipments as the weather improves, so any fines should be small next to their earnings. CP Rail and CN Rail are still buys....
CANADA BREAD CO. LTD., $72.30, Toronto symbol CBY, has accepted a $72.00-a-share takeover offer from Mexican bakery giant Grupo Bimbo SAB. Canada Bread’s shares are trading slightly higher than the bid. That’s because the deal lets the company keep paying quarterly dividends of up to $0.75 a share until Grupo Bimbo completes the takeover, probably by June 30, 2014. Before the deal, Canada Bread paid quarterly dividends of $0.50 a share. Investors should tender their shares to Grupo Bimbo to receive the full $72.00 without paying brokerage fees....
TECK RESOURCES LTD. $27 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 576.3 million; Market cap: $15.6 billion; Price-tosales ratio: 1.6; Dividend yield: 3.3%; TSINetwork Rating: Average; www.teck.com) is down 27.0% since we made it our #1 pick for 2013.
That’s mainly because slowing industrial activity, mainly in Asia, has hurt demand for Teck’s metallurgical coal, a key ingredient in steelmaking.
The company sold a record 7.6 million tonnes of metallurgical coal in the third quarter of 2013, up 36.5% from a year earlier. However, coal prices fell 28.0%, to $139 U.S. a tonne from $193. The uncertain economy has also hurt prices for Teck’s other products, including copper and zinc.
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That’s mainly because slowing industrial activity, mainly in Asia, has hurt demand for Teck’s metallurgical coal, a key ingredient in steelmaking.
The company sold a record 7.6 million tonnes of metallurgical coal in the third quarter of 2013, up 36.5% from a year earlier. However, coal prices fell 28.0%, to $139 U.S. a tonne from $193. The uncertain economy has also hurt prices for Teck’s other products, including copper and zinc.
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TECK RESOURCES LTD. $27 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 576.3 million; Market cap: $15.6 billion; Price-tosales ratio: 1.6; Dividend yield: 3.3%; TSINetwork Rating: Average; www.teck.com) is down 27.0% since we made it our #1 pick for 2013.
That’s mainly because slowing industrial activity, mainly in Asia, has hurt demand for Teck’s metallurgical coal, a key ingredient in steelmaking.
The company sold a record 7.6 million tonnes of metallurgical coal in the third quarter of 2013, up 36.5% from a year earlier....
That’s mainly because slowing industrial activity, mainly in Asia, has hurt demand for Teck’s metallurgical coal, a key ingredient in steelmaking.
The company sold a record 7.6 million tonnes of metallurgical coal in the third quarter of 2013, up 36.5% from a year earlier....
TECK RESOURCES LTD. $27 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 576.3 million; Market cap: $15.6 billion; Price-to-sales ratio: 1.6; Dividend yield: 3.3%; TSINetwork Rating: Average; www.teck.com) will contribute $2.9 billion to the Fort Hills oil sands project (see Suncor at left).
Teck mainly produces coal, copper and zinc, so Fort Hills will help diversify its operations. Its mining expertise will also help keep Fort Hills’ operating costs down.
The company will probably sell some of its less important assets to free up cash for Fort Hills. For example, it has reportedly agreed to sell its 3% stake in Australian iron ore mining company Fortescue Metals Group for about $479 million.
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Teck mainly produces coal, copper and zinc, so Fort Hills will help diversify its operations. Its mining expertise will also help keep Fort Hills’ operating costs down.
The company will probably sell some of its less important assets to free up cash for Fort Hills. For example, it has reportedly agreed to sell its 3% stake in Australian iron ore mining company Fortescue Metals Group for about $479 million.
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TECK RESOURCES LTD. $27 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 576.3 million; Market cap: $15.6 billion; Price-to-sales ratio: 1.6; Dividend yield: 3.3%; TSINetwork Rating: Average; www.teck.com) will contribute $2.9 billion to the Fort Hills oil sands project (see Suncor at left).
Teck mainly produces coal, copper and zinc, so Fort Hills will help diversify its operations....
Teck mainly produces coal, copper and zinc, so Fort Hills will help diversify its operations....
SUNCOR ENERGY INC., $36.80, Toronto symbol SU, announced this week that it will develop its Fort Hill oil sands property north of Fort McMurray, Alberta. Suncor owns 40.8% of Fort Hills, and will operate the project. Total S.A. of France owns 39.2%, while Teck Resources (see below) holds the remaining 20.0%. Fort Hills’ reserves should last 50 years. The company will contribute $5.5 billion to Fort Hills’ $13.5-billion cost. The project should begin operating in the fourth quarter of 2017. It should ultimately produce 180,000 barrels a day; Suncor’s share is 73,440 barrels. To put that in context, Suncor’s average daily production in the third quarter of 2013 rose 11.2%, to 595,000 barrels of oil equivalent from 535,300 barrels a year earlier....
TECK RESOURCES LTD. $26 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 576.3 million; Market cap: $15.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 3.5%; TSINetwork Rating: Average; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steelmaking. It also produces copper and zinc.
The stock is down 29.7% from $37 when we named it our top pick for 2013. That’s mainly because slowing industrial activity, mainly in Asia, has hurt commodity prices.
In quarter ended June 30, 2013, earnings fell 50.5%, to $197 million, or $0.34 a share. These figures exclude unusual items, such as foreign exchange losses and writedowns. A year earlier, Teck earned $398 million, or $0.68 a share.
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The stock is down 29.7% from $37 when we named it our top pick for 2013. That’s mainly because slowing industrial activity, mainly in Asia, has hurt commodity prices.
In quarter ended June 30, 2013, earnings fell 50.5%, to $197 million, or $0.34 a share. These figures exclude unusual items, such as foreign exchange losses and writedowns. A year earlier, Teck earned $398 million, or $0.68 a share.
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