Bruce Campbell (1)Fording Canadian Coal Trust (Inc Trust)FDG.UN.TOBUYJan 24, 2006
Coal is a “once a year sign a contract” around the middle of March. It was felt that the price of coal would be dropping, but recent contracts have indicated it could still be strong. This is one reason this stock is probably going up in spite of other problems they may have had. There could be a short term trade in this one.
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.)