Fording Canadian Coal Trust $63 – Toronto symbol FDG.UN

Article Excerpt

FORDING CANADIAN COAL TRUST $63 (Toronto symbol FDG.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 148.0 million; Market cap: $9.3 billion; SI Rating: Average) has gained 70% since the start of 2008, on strong demand for coal from Chinese steelmakers plus flooding at some Australian mines that limited global coal supplies. South Korean steelmaker Posco recently agreed to pay $308 U.S. a tonne in the coal year that began on April 1, 2008, up 210% from the prior year. Higher coal prices should help Fording cope with rising labour, fuel and other costs. Fording also aims to expand production, and continues to negotiate with railway and port service providers to handle the extra output. Fording is a buy. buy…