Bill CarriganFording Canadian Coal Trust (Inc Trust)FDG.UN.TOBUYAug 11, 2006
It violated a long-term trend line about 14 months ago so there has been a bear and he thinks it is in a long A, B, C correction. The MACD shows that it is rising, meaning it has reached its low. He would be buying. It has not established an uptrend, so to protect yourself put a stop at the last low.
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.)