teck resources

TECK RESOURCES LTD. $29 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 586.0 million; Market cap: $17.0 billion; Priceto- sales ratio: 1.4; Dividend yield: 2.8%; TSINetwork Rating: Average; www.teck.com) is selling more metallurgical coal and copper thanks to recent expansion projects.

Coal sales in the three months ended June 30, 2012 rose 19.6%, to 6.7 million tonnes from 5.6 million a year earlier. Copper sales rose 10.4%, to 85,000 tonnes from 77,000 tonnes.

However, slowing growth in China and India cut coal prices by 25.7% from a year earlier. Copper prices fell 13.8%.

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TECK RESOURCES LTD. $29 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 586.0 million; Market cap: $17.0 billion; Priceto- sales ratio: 1.4; Dividend yield: 2.8%; TSINetwork Rating: Average; www.teck.com) is selling more metallurgical coal and copper thanks to recent expansion projects. Coal sales in the three months ended June 30, 2012 rose 19.6%, to 6.7 million tonnes from 5.6 million a year earlier. Copper sales rose 10.4%, to 85,000 tonnes from 77,000 tonnes. However, slowing growth in China and India cut coal prices by 25.7% from a year earlier. Copper prices fell 13.8%....

Thompson Creek Metals Co. Inc., $2.67, symbol TCM on Toronto (Shares outstanding: 168.1 million; Market cap: $448.8 million, www.thompsoncreekmetals.com), is a molybdenum producer with mining, milling, roasting and marketing operations in Canada and the U.S. The company’s operations include the Thompson Creek mine in Idaho, a roasting facility in Langeloth, Pennsylvania, and 75% of the Endako mine and roaster in B.C. Molybdenum is either mined directly or recovered as a by-product of copper mining. The metal strengthens and prevents rust in alloys and high-temperature steels....

BOMBARDIER INC., Toronto symbols BBD.A $4.04 and BBD.B $3.91, rose 5% this week after the company received a firm order for 100 of its Challenger business jets from NetJets Inc., a private company owned by billionaire investor Warren Buffett. In addition to the implied endorsement by Mr. Buffett, this sale is worth $2.6 billion (all amounts except share prices in U.S. dollars), or 13% of Bombardier’s annual sales of $20 billion. The company will begin delivering these planes in 2014. NetJets also has an option to buy an additional 175 planes. If it exercises this option, the value of the entire order would rise to $7.3 billion. And if you include a related long-term contract to maintain these planes, the value of the entire agreement could reach $9.6 billion....

Tip of the week: There are a few good reasons to pay a little extra money for the right class of shares in the stocks you buy.

TECK RESOURCES LTD. $35 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 586.0 million; Market cap: $20.5 billion; Price-to-sales ratio: 1.8; Dividend yield: 2.3%; TSINetwork Rating: Average; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steelmaking. Coal accounted for 49% of Teck’s 2011 revenue and 57% of its earnings. The company also produces copper (27%, 28%) and zinc (24%, 15%).

Teck continues to benefit as the recovering global economy pushes up commodity prices. As well, in 2008, the company bought the 80.05% of Fording Canadian Coal that it didn’t already own. This purchase has further spurred Teck’s growth.

Quick rebound from downturn

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TECK RESOURCES LTD. $36 (www.teck.com) plans to sell $1 billion U.S. of new long-term bonds. It will use the cash to redeem $1.05 billion U.S. of its existing debt. The company will record a one-time, non-cash charge of $340 million U.S....

TECK RESOURCES LTD. $35 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 586.0 million; Market cap: $20.5 billion; Price-to-sales ratio: 1.8; Dividend yield: 2.3%; TSINetwork Rating: Average; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steelmaking. Coal accounted for 49% of Teck’s 2011 revenue and 57% of its earnings. The company also produces copper (27%, 28%) and zinc (24%, 15%). Teck continues to benefit as the recovering global economy pushes up commodity prices. As well, in 2008, the company bought the 80.05% of Fording Canadian Coal that it didn’t already own. This purchase has further spurred Teck’s growth.

Quick rebound from downturn

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TECK RESOURCES LTD. $36 (www.teck.com) plans to sell $1 billion U.S. of new long-term bonds. It will use the cash to redeem $1.05 billion U.S. of its existing debt. The company will record a one-time, non-cash charge of $340 million U.S. in connection with the early redemption. However, this move will cut Teck’s annual interest costs by $55 million U.S.; in 2011, Teck earned $2.5 billion (Canadian), or $4.18 a share. Buy. ROYAL BANK OF CANADA $56 (www.rbc.com) has completed the sale of its struggling U.S. retail-banking business, which consists of 424 branches in six southeastern states. That will free up cash that the bank can invest in its more profitable banking operations in Canada and the Caribbean. Royal also raised its quarterly dividend by 5.6%, to $0.57 a share from $0.54. The new annual rate of $2.28 yields 4.1%. Buy. TORONTO-DOMINION BANK $80 (www.tdbank.com) is looking for new ways to cut its costs, as low interest rates have shrunk the revenue the bank earns from loans. However, its credit losses continue to fall as more borrowers repay their loans on time. That let TD raise its quarterly dividend by 5.9%, to $0.72 a share from $0.68. The new annual rate of $2.88 yields 3.6%. Buy.

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