David Cockfield
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
BUY
Feb 21, 2005
Had a fantastic run and its current pause shouldn't be too much discouragement. Contracts being signed for future delivery are all up. Doesn't see the price of coal coming under downward pressure, so you have your prices locked in. Production is rising. Thinks the payout will be increased.
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.
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.