Brendan Kyne
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
DON'T BUY
Dec 14, 2005
He is actually short this stock. Not as favourable to the coal market for ‘06 /07 as he was in ‘04/05. Some of the upward momentum in the stock seems to have topped out about ¾ months ago. There may also be some difficulty in getting coal to market because of bottlenecks in rail capacity.
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.