Michael Simpson, CFA
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
DON'T BUY
Jun 01, 2006
Thinks metallurgical coal prices will go down to $95/99. Have been hit by a lot of cost increases. Would be more interested if it fell to the $30 level.
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.