Fording Canadian Coal Trust (Inc Trust)…

Fording Canadian Coal Trust (Inc Trust) (FDG.UN.TO)

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-0.00 (0.00%)

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DON'T BUY

They recently announced the price they will get for their metallurgical coal, which was a little bit lower than the market expected. They are faced with some bottlenecks in western Canada, including the rail line and shortage of tires for trucks. Longer term he likes coal. If stock price fell more, he would take a look at it.

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DON'T BUY

All of his active funds have sold this trust although some of the index funds still have some. There are some increasing costs as well as a concern on the pricing of their coal sales. The best is probably behind it. If you own, wait for the distribution on March 29.

DON'T BUY

Energy has some work to do. If this is a yield vehicle for you, it's a more fundamental play. If you're looking at it as a timely investment, you probably want a little bit of time to pass. They recently guided lower by way of volume and price but higher by way of expenses. Wait for the energy sector to start performing better.

DON'T BUY

Fording Coal is a trust they used to hold in their portfolio and sold in the the fall. Sold because they felt coal prices were going to soften in 06. Fording is in a healthyposition in regards to their distribution. Most of the growth has already taken place. Believes distributions will come down.

WAIT

Is having problems finding tires for it's machinery which is causing delays in production. Wait for pricing format before entering.

DON'T BUY

It will be a strong year. Cash distribution will be strong this year. We have probably seen the peak in its price however. Need to be careful in the coal sector as it is at the peak of its cycle.

HOLD

High quality company. Has a lot of exposure to the metallurgical coal market. They are currently in the process of negotiating 2006 contracts. Fully valued at this level.

BUY

Has exposure to coal pricing which has turned out to be strong for the next year. This trust looks undervalued, but expected to be chronically undervalued. Doesn't seem much upside. Good yield at 14.3%.

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BUY

Coal is a “once a year sign a contract” around the middle of March. It was felt that the price of coal would be dropping, but recent contracts have indicated it could still be strong. This is one reason this stock is probably going up in spite of other problems they may have had. There could be a short term trade in this one.

DON'T BUY

Have guided downwards their outlook for 2006 on both sales and production. Negotiations are just going through now on metallurgical coal and it is expected that prices will trend lower. Doesn't see a lot of upside in unit pricing. The income will probably stay high for the next 1/2 years which will be offset by lower unit prices.

DON'T BUY

Feels that metallurgical coal prices are in the decline from here, so the short-term outlook is not all that good.

BUY

One of its problems is a shortage of tires. They can't get enough for their Caterpillar trucks and they cost $50,000 each. The pullback is healthy and they will be producing less. The fact is, Asian and the emerging markets demand for coal is not going to go away. This is a great way to play it.

HOLD

Most of his holdings is in his index linked funds and he has sold most of his positions of his active funds in the last two months. Thinks that coal prices have hit their peak. 2006 will be okay, from a distributions standpoint but 2007 and onwards looks a little more cloudy.

COMMENT

If you bought this on the basis that coal is a good source of energy over the next 5/10 years and you are going to generate cash flow off the business, then don’t worry about fluctuations. Sold the bulk of his holdings.

DON'T BUY

He is actually short this stock. Not as favourable to the coal market for ‘06 /07 as he was in ‘04/05. Some of the upward momentum in the stock seems to have topped out about ¾ months ago. There may also be some difficulty in getting coal to market because of bottlenecks in rail capacity.

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Fording Canadian Coal Trust (Inc Trust) (FDG.UN.TO)