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Fording (FDG): Coal trust fires up growth & income

"One of the sectors I want to buy when it's on sale is the coal business," says Bryan Perry, editor of The 25% Cash Machine. Here, he looks at Fording Canadian Coal Trust (NYSE: FDG).

"Fording Canadian Coal Trust is an open-ended mutual fund trust and one of the largest royalty trusts in Canada. The trust makes quarterly distributions to unitholders using royalties received from its 60% interest in the metallurgical coal operations of the Elk Valley Coal Partnership.

"It is a beneficiary of the booming global steel industry where FDG's business is concentrated. Despite interruptions in coal production and delivery that may cause wild price swings, the underpinnings to the supply and demand equation for metallurgical coal are solidly bullish.

Continue reading Fording (FDG): Coal trust fires up growth & income

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Last updated: February 12, 2012: 08:36 AM

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