TRI Stock of the Day (FDG)

This year it may be beneficial to be on Santa’s naughty list which would result in receiving lumps of a smoking hot commodity in your stocking.  Thats right you guessed it coal.  Coal was one of the top performing commodities in Q1 08 and doesn’t seem to be slowing down one bit.  Worldwide coal shortages and intense demand from China (which uses coal to power 70% of its country) has driven the price of coal upwards.  Another factor is the increased demand for steel (of which coal is a main ingredient) as the BRIC countries continue their ramp up in infrastructure.  Fording Canadian Coal Trust (FDG) finished the trading day up 4.68% to a closing price of $76/share.  Fording has a dividend yield of 2.59% and rocks a PE of 43 and believe it or not has a forward PE of 9 which is computed from its 320% estimated 2009 growth rate.  The stock is up roughly 90% year to date.  Fording is an open-ended mutual fund trust and holds a 60% interest in the worlds second largest exporter of metallurgical coal.  To give you an idea of the change in price in 2007 the average price for coal was $93/tonne vs. the 2008 forecast of $195-$205/tonne.  A $10,000 investment in Fording 5 years ago would be worth $130,000 today.

To find out more click www.fording.ca

On a side note:  For those looking for a good entry point for Visa (V) today may have been that day as it has pulled back to a very attractive price level.  There was a 20 point gap between the 50DMA and the market price and now its just a matter of a few points.  Also the shipping industry more commonly known as the dry bulk sector has had a huge selloff  the past week with some of the names like TBSI and DRYS down 20% and 15% in the past week.  Now may be an opportune time to establish a position or add to an existing position.