Peter BriegerFording Canadian Coal Trust (Inc Trust)FDG.UN.TOBUY ON WEAKNESSJan 27, 2005
Coal business is one of the commodities to keep an eye on. Given this company's 12 distribution rate, it might be one of the best ways to play coal. Coal prices have been locked in for the next year. Try to buy in the low $90's.
Being acquired by Teck Cominco (TCK.B-T). If you are holding this in a taxable account, there are some very negative consequences. In an RRSP or RIF you can avoid the tax consequences. He sold the majority of his holdings into the market prior to the transaction.
Being acquired by Teck Cominco (TCK.B-T). Arbitrage companies were forced to sell. There is a financing gap and Merrill Lynch (MER-N) is part of that, so the market is concerned. The deal could fall apart.
If held in an RRSP, you could continue holding. If it's in a taxable account, consider selling the units before the new deal gets done. Take it as a gain as opposed to the tax treatment that will supposedly come on the consummation of the deal. (Editor’s note. Check with your broker.)