Ravi SoodFording Canadian Coal Trust (Inc Trust)FDG.UN.TOSELLOct 14, 2005
If you are looking for stable distribution, this is not for you. Thinks the upside on coal prices from here are pretty limited, but doesn't expect much downside either. In the coal market, it is a tax efficient way to play it.
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.)