John Zechner
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
DON'T BUY
Jun 14, 2005
For this year and next they are going to have tremendous cash flow. Coal prices are trading around $120 a ton. His sense is that coal prices can come back to maybe the $60/80 range.
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.