You know the old saying: "The harder we work, the luckier we get?" Well, our work in the natural resources sector is paying off in more ways than just big dividends.

We're now starting to see some consolidation because of the attractive, long-term fundamentals of entities like metallurgical coal producer Fording Canadian Coal Trust (FDG).

This latest addition to The 25% Cash Machine model portfolio didn't make it a full month on the Buy List before being acquired by Vancouver-based Tek Cominico Ltd. (TCK). Teck Cominco has agreed to buy export coal producer Fording Canadian Coal Trust in a cash-and-stock deal valued at almost $14 billion (U.S.), based on Monday's closing prices.

The acquisition will give Teck a 100% interest in its already 40%-owned Elk Valley Coal Partnership -- one of Canada's largest exporters. The companies said Elk Valley Coal is the world's second-largest producer of seaborne hard coking coal, producing primarily high-quality hard coking coal from its six operating mines in British Columbia and Alberta.

The deal pays FDG shareholders $82 per share plus 0.24 shares of Tek Comonico Class B shares that carry a yield of only 2.3%. Shares of FDG closed on Tuesday at $89, up 16% from our entry point of $76.65 on July 8.

Take profits here as the stock doesn't pay its next dividend until late September. And congratulations on cashing in on some rapid and tidy profits in a very unforgiving market.

Remember, there's always a bull market somewhere, and right now it's coal.

I'll see you Friday with the Weekly Update.

Bryan Perry

Editor The 25% Cash Machine