Fording Canadian Coal Trust Company Overview

Fording Canadian Coal Trust was a Canadian coal trust that operated from 1981 to 2007. It was a unique business structure that allowed investors to own shares in a trust that held a majority stake in a coal mining company.

The trust was established in 1981 and was initially focused on acquiring and developing coal deposits in British Columbia, Canada. It was a successful venture, with the company expanding its operations and increasing its production over the years.

One of the key features of the trust was its ability to issue units, which gave investors a share of the company's profits and assets.

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Fording Canadian Coal Trust's purchase by Teck Cominco is still on, despite speculation causing Fording units to plummet 10 per cent to $81.83 on the Toronto Stock Exchange.

The deal is set to close at the end of October, with Teck offering $12.4 billion US in cash plus shares worth about $1.5 billion Cdn for Fording.

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However, analysts say the concern with the Teck-Fording agreement stems from Merrill's 20 per cent involvement in the $9.8-billion financing of the deal.

Other financial companies, including JP Morgan, Citigroup, CIBC, Royal Bank, and Bank of Montreal, are also lending Teck money for the Fording deal.

It's reasonable to expect that the structure of the deal is changing, given the current turmoil in the credit markets, said Desjardins Securities analyst John Hughes.

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Canadian Coal Inc offers a unique investment opportunity. The stock experts' signals for Fording Canadian Coal Trust (Inc Trust) indicate a high score, suggesting that experts mostly recommend buying the stock.

You can calculate the stock experts' signals for Fording Canadian Coal Trust (Inc Trust) to determine their recommendation. A high score means experts mostly recommend buying the stock while a low score means experts mostly recommend selling the stock.

Fording Canadian Coal Trust (Inc Trust) is a trust that can be a good option for investors. The stock is traded under the ticker symbol FDG.UN-T.

Investors can take a closer look at the stock experts' signals for Fording Canadian Coal Trust (Inc Trust) to inform their investment decision.

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When considering whether an investment is a good one, it's essential to look for expert recommendations. Fording Canadian Coal Trust (Inc Trust) was recommended as a Top Pick by an expert on a specific date.

The recommendation alone may not be enough to convince you to invest. You should also read the latest stock experts' ratings for Fording Canadian Coal Trust (Inc Trust) to get a more up-to-date picture.

Expert opinions can be a valuable guide, but it's crucial to do your own research and consider multiple perspectives. This will help you make a more informed decision about your investment.

Ultimately, the decision to invest in Fording Canadian Coal Trust (Inc Trust) or any other stock is a personal one that depends on your individual financial goals and risk tolerance.

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Teck Cominco's $14-billion US bid to buy the Fording Canadian Coal Trust is still on and set to close at the end of October.

The deal was announced in late July, but speculation about its fate caused Fording units to plummet 10 per cent to $81.83 on the Toronto Stock Exchange.

Teck has offered $12.4 billion US in cash plus shares worth about $1.5 billion Cdn for Fording, with each Fording unit to be exchanged for $82 US in cash and 0.245 of a Teck class B subordinate voting share.

Six banks, including CIBC, Royal Bank, and Bank of Montreal, are lending Teck money for the Fording deal, with Merrill's 20 per cent involvement in the $9.8-billion financing being a point of concern.

These banks are now in the process of bringing in other lenders to back their financial commitments, as the credit markets continue to increase in volatility.

Analyst John Hughes notes that everything is in flux right now, making it reasonable to expect that the structure of the deal is changing.

Despite the turmoil in the credit markets, another analyst believes the deal makes sense for Teck, both strategically and financially.

Fording Canadian Coal Trust's units have gained over 80% since the start of 2008, largely due to the prospect of a big jump in coal prices.

Its quarterly distributions peaked at $1.80 a unit in 2005, but have moved down to $0.50 in 2008 for a current yield of 2.8%.

Fording's units trade at just 9.7 times its projected 2008 earnings of $7.33 a unit.

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Toronto FDG.UN is a stock that's been on a tear, gaining over 80% since the start of 2008. Fording Canadian Coal Trust, the company behind the stock, is one of the world's leading producers of metallurgical coal.

It's a key ingredient in steelmaking, and demand is soaring, particularly in China. Fording's reserves should last 25 years at current production rates.

The company's main asset is its 60% stake in the Elk Valley Coal Partnership, which operates six coal mines in British Columbia and Alberta. Teck Cominco owns the remaining 40% of Elk Valley.

Fording sells its coal in U.S. dollars, making it vulnerable to the rising Canadian dollar. However, higher coal prices should help offset this vulnerability.

Fording's quarterly distributions peaked at $1.80 a unit in 2005, but have moved down to $0.50 in 2008 for a current yield of 2.8%.

Earnings reports can cause a stock price to drop, as seen in the case of Fording Canadian Coal Trust (Inc Trust) stock.

Recent company news can also lead to a decline in stock price, making it essential to stay informed about the company's developments.

Earnings reports and company news can significantly impact the stock market, so it's crucial to stay up-to-date on these factors.

Reading stock experts' recommendations can provide valuable insights on whether to buy, sell, or hold a stock, as seen in the example of Fording Canadian Coal Trust (Inc Trust).

By staying informed and making informed decisions, investors can navigate the stock market with confidence.

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