Did FCX win the Lottery ?
I had an idea for a new posting - this may be interesting.
I thinkthere is always a reason that any stock shows up on the MFI list. It may be fun / interesting to talk about the various reasons stock by stock.
Let me start with this one - FCX - has been on the top 25 MFI ever since I first looked at the list and I actually have the stock for a year now. Why are they on the list ?
- Copper and Gold prices
I am not a stock analyst or financial expert - but it seems rather simple in this case - FCX has been around for 100 years or so - they mine Copper and Gold - the stars have aligned and copper prices went through the roof (gold as well - i think). Don't know much about details for the commodities market - but I know prices will even out eventually.
The only other question is - what is FCX doing with it's cash windfall ? Looks like they are buying a competitor - PhelpsDodge (also on the list). I don't know - but that reminds me of a lotto winner going on ashopping trip >>> I think I am selling this week (my year is up).
posted by Erik Hochstein @ 10:01 AM
2 Comments:
Eric,
I think you right about your theme. Whenever you look at an MFI stock, you have to ask yourself what they do and whether the TTM income is sustainable? Everyone can draw their own conclusions. FCX may not see a repeat of the record prices in 2007, but they are cheap compared to their earnings and over time I believe commodity prices will contninue to go higher.
MG
and I'm just getting in, sucks that it hasn't really moved for a year. I'm speculating that the combination of becoming the 2nd biggest copper miner in the world and inflationary pressures raising the price of gold, the stock price will move in the right direction. Lets hope this past weeks performance is a foreshadowing of things to come.
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