David Burrows
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
WAIT
May 03, 2005
Hanging in pretty well in this downdraft in energy prices, partly because it pays a nice yield. There is risk as you are seeing some weakness in the price of steel which has been the big source of demand in the coal industry. Would like to add to his portfolio, but will wait to see some strength in the energy part of the market.
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.