Freeport McMoran Copper & Gold (FCX)

Once we get this growth scare, that he thinks we are going to have, this is a name that if you can get it in the mid-$30’s or better, he would definitely be a buyer. Good balance sheet, good dividend, good management and lots of resources. On his watch list.

Positive is that they have gold stream coming through it. Each rally has less and less legs. No positive guidance on this quarter in this group. It`s a bottom fishing play based on QE3.

When you look at copper broadly, there are only 2 weeks of demand covered globally. It has the tightest fundamentals of any metal. Over 3% dividend yield. The cheapest stock in the large-cap materials universe. Really inexpensive. Has upside to copper prices, yield support, good growth and feels copper is the best place to be.

(Market Call Minute.) Great copper play. Copper prices have hung in relatively well and he still sees the global economy growing.

One caveat is that this company has the Indonesia issue that is always hanging over their head. Renegotiating with the Indonesian government scares him a little bit. Some of the mines that they are getting copper out of are no longer open pits so there are cost pressures. Really well-run company. Good dividend. Wait for 6 months when people are sad.