Norman Levine
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
BUY
Dec 05, 2005
The outlook for coal is quite good. They are in the metallurgical coal. Most of theirs is shipped off to Japan and the outlook there continues to look good. If you like a pure play in coal this will be good.
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.