Resource Stock Roundup: Thursday, November 13th, 2008
Nov 13th, 2008 | By Doug Casey | Category: Financial NewsAfter an ever so brief reprieve the bears returned and once again started mauling the bulls during Wednesday’s trading session on the Canadian markets. For the tale of the tape, the TSX Exchange plunged 5.32%, while the TSX Gold Index tanked 8.5% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 5.71% with the declining issuers outpacing the advancers by a 607 to 224 margin, on volume of 141 million shares traded.
Going from the penthouse to the poorhouse, Teck Cominco (NYSE:TCK) is looking at several options to trim costs. A series of investments over the past two years has pushed the company from a cash-rich state to a cash poor one, with reports out that the diversified miner will cut its dividend, cut spending on development projects such as the Fort Hills oil sands, its Galore Creek copper project in British Columbia and its Petaquilla copper project in Panama. Given the current commodity price environment Teck, which lost C$2.12 to close at C$6.63, simply overpaid for its most recent acquisition; Fording Canadian Coal.
Meanwhile, investors digested (NYSE:CCJ) Cameco’s third quarter profit of $142-million or $0.41 per share, which is 46% lower that the third quarter of 2007. Lower uranium prices are the reason for the shortfall. Cameco ended the session down C$1.25 at C$17.35.
Titan Uranium remained unchanged at C$0.155 despite announcing that it had inked a deal allowing Japan Oil, Gas and Metals National Corp. to earn a 50% interest in its Border Block project in Saskatchewan. The price tag is C$6 million in exploration spending.
Barrick Gold (NYSE:ABX) represented the sell-off in the gold sector with the global leader losing C$2.88 to close at C$25.60.
It looks like forced selling will drive both the big and small boards past their recent lows and into uncharted territory. We will see what Thursday trading has in store.
Source: Resource Stock Roundup: Thursday, November 13th, 2008
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.