6 responses to “(FDG) FORDING CDN COAL has great dividend yield, cheap P/E and amazing growt rates.”

1. 

   len

   July 13, 2006

   hi vado!

   i was gonna ask what fgd was… i thought it was a tire unit or something but before i could even ask it seems u’ve read my mind so it’s a company mr galotti mentioned. anyway, thanks for this update on ur blog. i thought u had a long vacation and i missed ur blog.

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2. 

   deminvest

   July 13, 2006

   Len,

   It is a great canadian coal producer. I bought 50 of them at USD 30,2 each. I am writing less now because I am not very excited of this market situation. I try to invest only $1000 a month and buy only one stock a month. I consider FDG coal mines so interesting that I bought $ 1,500 of it, which more than I had planed. What about you? Are investing, selling or just looking at the market lately?

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3. 

   deminvest

   August 14, 2006

   My mistake.
   I wrongly connected FDG to extremely healthy energy markets, as you point out its coal has to be used for steel production and that is a totally different story.

   Reply
4. 

   len

   July 14, 2006

   hi vado!

   just like you am not so happy with the market unlike some two years back that there were some exciting markets in the asia but now i think we have to be extra cautious. so am still on the wait and see on the markets and other opportunities for investment. thanks for this blog of yours this gives me some idea on some areas that others would not dare to tread. good luck vado and thanks retirein for those tips.

   Reply
5. 

   monthlydivs

   August 5, 2006

   Why FDG unit price has gone down?

   1) Met coal contract price in 2006 is lower than 2005
   met coal contract price.

   2) FDG has not been able to increase production volume
   of met coal in 2006 versus 2005.

   3) Production costs are rising for each ton of met coal
   produced & sold.

   4) Some FDG customers either delayed or cancelled met
   coal orders from FDG.

   5) Most likely in 2007 and 2008, we will be seeing increased
   supply of met coal coming on world markets from Australia
   & other countries. (Maybe putting pressure on met coal
   contract prices?)

   So we have a company with lower selling prices, higher cost
   of goods & lower production & sales. That means FDG will
   not be generating the same levels of cash flow in 2006 that it
   was in 2005 and thus the reducton in quarterly FDG distributions.
   As FDG quarterly distributions were reduced, some FDG investors
   sold which then put “selling pressure” on FDG unit price driving
   it down.

   Hope that summarizes what has been happening with FDG.
   I think the “risk” on FDG is somewhat reduced if an investor
   is able to purchase FDG units at $25 price level. If a person
   purchased FDG at $40 price level, I think they will be waiting
   a long time for FDG to get back up to $40 price level. My hunch
   is FDG will sell between $25-$28 until next quarterly FDG
   distribution announcement.

   MD

   Reply
6. 

   Fording Canadian Coal (FDG) hit my 40% up target in such hard times! « Democratic Investments by the people for the people

   February 1, 2008

   […] trackback on  July 13, 2006 I bought  50 FDG at USD 30.2 each spending a total amount of $1510.  I wrote why I chose Fording Canadian Coal right on this Blog. I’m surely glad of my […]

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