Is Teck Resources (TECK)’s Shares Worth Buying?

Greenlight Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. An annual return of 11.9% was recorded by the fund for the whole year 2021, compared to the 28.7% of the S&P 500 index for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Greenlight Capital, in its Q4 2021 investor letter, mentioned Teck Resources Limited (NYSE: TECK) and discussed its stance on the firm. Teck Resources Limited is a Vancouver, Canada-based mining company with a $17.2 billion market capitalization. TECK delivered a 12.35% return since the beginning of the year, while its 12-month returns are up by 79.59%. The stock closed at $32.38 per share on February 2, 2022.

Here is what Greenlight Capital has to say about Teck Resources Limited in its Q4 2021 investor letter:

“Teck Resources (TECK) advanced 16% from $24.91 to $28.82 per share during the quarter and 59% for the year. Our primary investment thesis revolves around TECK’s copper assets, including a new mine that is scheduled to begin production in the second half of 2022. However, TECK’s bigger current business is mining metallurgical coal. Met coal prices started climbing in the middle of 2021 and really took off later in the year. The result is that 2021 EPS expectations, which began the year at $1.67, rose to $3.49 at the end of September and sat at $4.50 at year end. Next year’s estimate is now $5.52, which we believe is likely to be exceeded by a good amount. Further, it appears that TECK’s management is evaluating the possibility of splitting the met coal business from the “green metals” business, which would likely unlock substantial shareholder value as certain investors are sensitive to exposure to coal. At around 5x expected earnings – with the new mine coming online and a possible split-off – we believe this is an exciting opportunity heading into 2022.”

Photo by Ricardo Gomez Angel on Unsplash

Our calculations show that Teck Resources Limited (NYSE: TECK) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TECK was in 41 hedge fund portfolios at the end of the third quarter of 2021, compared to 40 funds in the previous quarter. Teck Resources Limited (NYSE: TECK) delivered a 17.70% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.