Stockchase Opinions

Ben ChengFording Canadian Coal Trust (Inc Trust)FDG.UN.TOBUYAug 07, 2008

(Market Call Minute.) A cheap way to own Teck Comminco (TCK.B-T). Likes the prospects for coal.
$89.86

Stock price when the opinion was issued

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(A Top Pick May 22/08. Up 38.12%.) Acquired by Teck Resources (TCK.B-T).
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(A Top Pick March 26/08. Up 93.3%.) Acquired by Teck Cominco (TCK.B-T).
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(A Top Pick March 26/08. Up 93.3%.) Acquired by Teck Cominco (TCK.B-T)
PAST TOP PICK
(A Top Pick March 26/08. Up 93%.) One of the few buyouts that went through.
COMMENT
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.
HOLD
Don’t buy it here. The stock is telling you the deal will get done.
HOLD
Tender this to teck and look at teck as a good long-term investment.
BUY
It has an interesting spread.
PAST TOP PICK
(A Top Pick Mar 26/08. Up 46%.) Being acquired by Teck Cominco (TCK.B-T).
COMMENT
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.
BUY
(Market Call Minute.) Below the cash value of the bid from Teck Cominco (TCK.B-T) and the deal is going through.
COMMENT
(Enquiry by US resident.) Being acquired by Teck Cominco (TCK.B-T). For a US resident, you should take the money and run.
PAST TOP PICK
(A Top Pick Oct 9/07. Up 135%.) Being acquired by Teck Cominco (TCK.B-T).
COMMENT
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.)