Norman LevineFording Canadian Coal Trust (Inc Trust)FDG.UN.TOHOLDMar 31, 2005
Coal in B.C. has been the major beneficiary of the high price and big demand for steel. This company produces metalurgical coal which is one of the components of steel. Feels this trust got way ahead of itself. Will probably be some more profit taking.
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.)