Magic Formula Investing

Using the Magic Formula for investing; based on "The Little Book that Beats the Market" I started a real life test with $50,000 of my own money. The blog described the process, thoughts, pain and ongoing updates on this adventure.

Sunday, February 25, 2007

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).

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