Kevin Hall BComm, CFAFording Canadian Coal Trust (Inc Trust)FDG.UN.TOHOLDOct 28, 2005
Q3 earnings were a little bit soft in terms of production. Some of their sales to China were delayed and pushed forward. There is also the problem of getting caught in the biusiness trust downdraft. Sold their position in Sept/05 on the basis of looking at increasing dividends in the near term but trading off against capital depreciation next year.
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.)