Michele RobitailleFording Canadian Coal Trust (Inc Trust)FDG.UN.TOHOLDSep 16, 2005
Had tremendous performance over the last several months and now getting near full value. Operationally, the company is performing well. High prices of coal is getting into the system and expects good 3rd/4th quarter results resulting in an increase in distributions, but that is already priced into the shares. Consider taking some profits.
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.)