Gavin GrahamFording Canadian Coal Trust (Inc Trust)FDG.UN.TOBUYDec 29, 2005
One of its problems is a shortage of tires. They can't get enough for their Caterpillar trucks and they cost $50,000 each. The pullback is healthy and they will be producing less. The fact is, Asian and the emerging markets demand for coal is not going to go away. This is a great 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.)