David BurrowsFording Canadian Coal Trust (Inc Trust)FDG.UN.TODON'T BUYMar 23, 2006
Energy has some work to do. If this is a yield vehicle for you, it's a more fundamental play. If you're looking at it as a timely investment, you probably want a little bit of time to pass. They recently guided lower by way of volume and price but higher by way of expenses. Wait for the energy sector to start performing better.
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.)