Freeport McMoran Copper & Gold (FCX)

Thinks that copper prices will continue to be relatively weak. As time goes by and the economy is strengthening and there are solid economic numbers, this type of stock should do well.

Gold/copper producer. One of the reasons that the Fed and central banks globally are keeping rates low is to try to bolster asset and commodity prices and growth. You would think this would play into a copper and gold producer. On the other side of that is the weakening of the macro picture which is sort of depressing these companies. In the short-term, don’t expect too much. Longer-term it is going to be good for companies like this. He would tend to stay away from the whole sector.

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.