Stock buybacks: TECK

What are your favorite stocks with buyback authorizations in place? I will offer Teck Resources (TECK). It has a very modest $100 million share buyback authorization in place despite funding a massive new copper mine (QB2) in Chile. QB2 is projected to begin production in H2 of this year. https://www.teck.com/media/Q4-Financial-Report-2022.pdf IF commodity prices remain highly elevated, with TECK earnings and cash flow consequently very strong, and IF TECK's share price remains modest in relation to earnings and cash flow, my expectation is that share buyback authorizations will increase materially in 2023 once QB2 transitions from a cash drain to a cash contributor. TECK shortly is expected to report Q1 earnings of over $2/share (U.S. dollars; the above linked quarterly report is in Canadian dollars). https://finance.yahoo.com/news/buy-teck-resources-teck-ahead-130601268.html The stock recently has sold off from its 52-week high of $44 to $36. IMO, TECK option premiums are good for those interested in writing covered calls. Risk in a TECK investment includes a recession that would sink commodity prices. As with many commodity producers, TECK was pounded in March of 2020 when commodity prices collapsed at the beginning of the COVID epidemic. It's low in March 2020 was below $7/share. Another risk is geopolitical as Chile reconsiders its Constitution and mining laws. https://www.mining.com/chile-constitution-drafters-reject-mining-adverse-proposal/ With its production of copper and zinc, TECK is a beneficiary of decarbonization. Much of its revenues stems from production of metallurgical coal, which should benefit from infrastructure projects, especially those associated with "resiliency" as accelerated sea level rise becomes ever more pronounced in this decade. It also is a bitumen producer benefiting from currently high oil prices; I suspect TECK is interested in selling its bitumen operations if can receive a good price. What stocks do you own with buyback provisions in place and prospects for material buybacks in the future?

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Stock buybacks: TECK

bullish

What are your favorite stocks with buyback authorizations in place?

I will offer Teck Resources (TECK). It has a very modest $100 million share buyback authorization in place despite funding a massive new copper mine (QB2) in Chile. QB2 is projected to begin production in H2 of this year.

https://www.teck.com/media/Q4-Financial-Report-2022.pdf

IF commodity prices remain highly elevated, with TECK earnings and cash flow consequently very strong, and IF TECK's share price remains modest in relation to earnings and cash flow, my expectation is that share buyback authorizations will increase materially in 2023 once QB2 transitions from a cash drain to a cash contributor.

TECK shortly is expected to report Q1 earnings of over $2/share (U.S. dollars; the above linked quarterly report is in Canadian dollars).

https://finance.yahoo.com/news/buy-teck-resources-teck-ahead-130601268.html

The stock recently has sold off from its 52-week high of $44 to $36. IMO, TECK option premiums are good for those interested in writing covered calls.

Risk in a TECK investment includes a recession that would sink commodity prices. As with many commodity producers, TECK was pounded in March of 2020 when commodity prices collapsed at the beginning of the COVID epidemic. It's low in March 2020 was below $7/share. Another risk is geopolitical as Chile reconsiders its Constitution and mining laws.

https://www.mining.com/chile-constitution-drafters-reject-mining-adverse-proposal/

With its production of copper and zinc, TECK is a beneficiary of decarbonization. Much of its revenues stems from production of metallurgical coal, which should benefit from infrastructure projects, especially those associated with "resiliency" as accelerated sea level rise becomes ever more pronounced in this decade. It also is a bitumen producer benefiting from currently high oil prices; I suspect TECK is interested in selling its bitumen operations if can receive a good price.

What stocks do you own with buyback provisions in place and prospects for material buybacks in the future?

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44.00
Target Price
9/ 10
Confidence
6-12 Months
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