Garth Jestley
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
DON'T BUY
Dec 02, 2005
Sold their holdings in the last 6/8 weeks. Enjoyed a good run. Thinks there will be some down tick next year in coal. More risks on the downside than opportunities on the upside.
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.