Inco Is the Best of the Three

Article Excerpt

Some of our biggest gainers in the past few years have been in stocks from the Resources sector. Investors need to keep the risk and volatility of this sector in mind. TECK COMINCO LTD. $75 (Toronto symbol TEK.SV.B; Conservative Growth Portfolio, Resources sector; SI Rating: Average) is the world’s biggest supplier of zinc, a metal that prevents steel from rusting. The company also a major producer of copper, gold and indium, a metal used in flat-screen TV sets. Thanks to the huge run up in metal prices in the past few years and its growing cash flow, Teck is now looking for acquisitions that broaden its operations, such as its recent investments in Alberta’s oil sands and its 40% stake in the Elk Valley Coal Partnership, a major supplier of metallurgical coal to Asian steelmakers. Fording Canadian Coal Trust owns the other 60%. That’s what prompted Teck to launch a hostile takeover bid for INCO LTD. $75 (Toronto symbol N; Conservative Growth Portfolio,…

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