Robert Lauzon
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
DON'T BUY
Apr 07, 2006
Because it is in the index, some of his funds have to include this. Sold his active positions. Feels the high price of coal is behind us now. Expecting higher freight costs.
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.