The Successful Investor Hotline – Friday, January 11, 2013

Article Excerpt

TECK RESOURCES LTD., $36.93, Toronto symbol TCK.B, is our “Stock of the Year” for 2013. Resource companies are highly cyclical. Teck fell to just $3.35 in March 2009 as the credit crisis hurt its ability to refinance the $9.8 billion U.S. in short-term loans it took on the year before as part of its $13.6-billion (Canadian) purchase of Fording Coal. At that time, Teck’s market cap (the value of all outstanding shares) was just $1.6 billion. However, rising commodity prices helped it find new lenders, and Teck rose as high as $65 in January 2011. The stock has moved down since then due to the slowing global economy. However, we feel the company’s high-quality, long-lasting reserves and potentially higher commodity prices in 2013 make it a particularly attractive buy right now. The shares trade at 13.4 times Teck’s forecast 2013 earnings of $2.75 a share and 8.4 times its projected cash flow of $4.40 a share. Teck Resources is our #1 buy for 2013. Please…