Updates on Fording Canadian Coal, BCE Inc., Torstar and Imperial Oil

Article Excerpt

FORDING CANADIAN COAL $62.06 (Toronto symbol FDG.UN; SI Rating: Average) jumped 10% to a new all-time high recently after South Korean steelmaker Posco agreed to pay $308 U.S. a tonne for coal from BHP Billiton in the coal year that began on April 1, 2008. That’s 210% more than the industry benchmark price of $98 U.S. in the prior year. Fording is still negotiating new prices with its customers. Higher coal prices will help it offset rising labour, transportation and other costs. Fording units currently yield 3.2%. Fording is still a buy. BCE INC. $36.80 (Toronto symbol BCE; SI Rating: Above-Average) has won approval from Ottawa for its $42.75-a-share takeover by a group led by the Ontario Teachers’ Pension Plan. The plan has now received all of the necessary regulatory approvals. Despite the approval, the stock continues to trade for 14% below the offer. That’s because the problems in the debt markets could make it harder for the buyers to issue the bonds they…