Peter Gibson
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
WEAK BUY
Jun 22, 2006
Likes this company because there is some modest profit growth. Could see 20% appreciation in 12 months. Not the strongest name in the trust area. Have cut their distributions.
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.