This is a Large Cap trading near its 52 week high. I usually don't like to be a buyer at 52 week highs, but I just can't ignore this.
I took a half position at 107.73. I'd like to pick up my 2nd half under 100 if I can. I don't think FCX could hold under 100 for long.
FCX EPS in most recent quarter was $3.21. If you get no growth, then thats about $13 a year in EPS. I just don't think FCX has any business trading at a forward PE under 10.
I loved AUY until I found FCX. I still like AUY, just not nearly as much as FCX, so I need to go all in to FCX. FCX made a recent acquisition and their rev/eps #s have BLOWN UP. Look at rev #s...
Q3 06 1.6 bil
Q4 06 1.6 bil
Q1 07 2.3 bil
Q2 07 5.8 bil
and eps..
Q306 $1.73
Q406 1.99
Q107 2.75
Q207 3.21
This valuation is silly. It should be a mad dash to $150.
I picked up a second half in the upper 104s.
FCX looks great after consolidating for a little while. I think it's ready for new highs..maybe $120-125 on this run?
Their debt from the Phelps Dodge acquisition has been about half paid down to $7 billion.
They are making so much money it's insane. Anyone who thinks this is expensive at $100 is crazy and hasn't looked at the fundamentals.
Copper COMEX up 1.5% today to $3.68. If Copper is $4/lb, I can't even imagine the fair value of FCX. At least $200 I'd think...
SLT is another miner that looks great. Also a tremendous chart for techies on the board. It trades at 7 or 8 times earnings..stupid.
The world has a high demand for copper right now. It's coming from all over, especially China.
Knocking on the door of a new high, this stock is way too cheap. Nice looking consolidation and ready to rock.
Great fundamentals + solid technicals = explosion
FCX and SLT are both primed for breakout. The valuations on these stocks is stupid, the market has somehow forgotten copper is selling for more than $3.60 a barrel. This equates to big dollars for these companies, any excess price in copper goes straight to the bottom line, and they make a ton of cash. And they're trading at stupid low valuations.
FCX I'd like to sell over $200 and SLT is worth at least $30. SLT in the teens is quite a bargain, and I dont think FCX will ever see double digits again barring a split / breakdown in the economy.
This is an excellent way to play China without really having your money there. You're beating the money there, before everyone realizes it.
I think FCX is presenting an excellent buying opportunity. I believe Wall Street is providing investors and traders with an excellent opportunity to pick up some cheap shares of a great stock.
I'm of the opinion copper mining stocks are being sold off too much. Granted, copper is down to $3.50 / lb vs. a high of about $3.75 a few weeks ago. But $3.50 is still a high price for copper, and if copper stayed at $3.50 FCX would make more money than they know what to do with. Special huge dividend central.
PCU is performing better recently, but I prefer FCX.
I have a feeling bottom feeders will feast on cheap FCX shares today as copper rises and the market realizes it has punched copper producers a bit hard. I suppose earnings before the bell tomorrow will tell the story.
FCX looks primed for a move higher. An uptick in copper would help especially. I'd guess the next stop is $130 if we can break $120.
Sold my Freeport this morning to buy CSIQ.
FCX was my favorite stock for a bit, so it hurts to take a small loss on it. Copper went against me and I decided the stock wasn't as cheap as I ever really thought.
Still like it, but like CSIQ more and had to make the switch. It hurt to sell this one..