Freeport McMoran Copper & Gold

FCX-N

NYSE:FCX

12.89
0.07 (0.55%)
Freeport-McMoRan Inc., often called Freeport, is a mining company based in the Freeport-McMoRan Center, in Phoenix, Arizona.
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Analysis and Opinions about FCX-N

Signal
Opinion
Expert
BUY
BUY
February 24, 2020
It's below its 200-day moving average and has returned to its January lows. In October 2019, it fell to $8.50, which we don't need to revisit. If it closed below $10.91, then something is going on and it's likely it'll return to $8.50. Now, it looks pretty good. Watch to see it can stay above $10.91. With today's sell-off, FCX's risk/reward looks better.
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It's below its 200-day moving average and has returned to its January lows. In October 2019, it fell to $8.50, which we don't need to revisit. If it closed below $10.91, then something is going on and it's likely it'll return to $8.50. Now, it looks pretty good. Watch to see it can stay above $10.91. With today's sell-off, FCX's risk/reward looks better.
TOP PICK
TOP PICK
April 15, 2019
Focused on copper, molly and gold, it has really been moving up. There is no new copper coming on-stream, making a really good tail wind. (Analysts’ price target is $14.32)
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Focused on copper, molly and gold, it has really been moving up. There is no new copper coming on-stream, making a really good tail wind. (Analysts’ price target is $14.32)
BUY
BUY
November 16, 2018
Has been building a base. Thinks commodities will be sucked up with any rally of gold or crude. He’s a buyer and a holder here.
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Has been building a base. Thinks commodities will be sucked up with any rally of gold or crude. He’s a buyer and a holder here.
COMMENT
COMMENT
November 7, 2017

Although they are in a number of minerals, this trades closer to copper, and copper has done really well. The stock is going to be volatile, as there are going to be hits and misses on earnings. It is underpinned right now by some pretty decent fundamentals on the commodity side. There are a number of secular drivers that he suspects will be behind this. Hasn't seen anything that indicates you need to be overly cautious.

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Although they are in a number of minerals, this trades closer to copper, and copper has done really well. The stock is going to be volatile, as there are going to be hits and misses on earnings. It is underpinned right now by some pretty decent fundamentals on the commodity side. There are a number of secular drivers that he suspects will be behind this. Hasn't seen anything that indicates you need to be overly cautious.

HOLD
HOLD
November 6, 2017

Copper markets have had a great move this year. This has some gold, but mostly copper and a lot of oil. The balance sheet got very stretched. They've done a great job of paying down debt. Looking in better shape than they have for a long time. Thinks there is still upside to go.

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Copper markets have had a great move this year. This has some gold, but mostly copper and a lot of oil. The balance sheet got very stretched. They've done a great job of paying down debt. Looking in better shape than they have for a long time. Thinks there is still upside to go.

HOLD
HOLD
October 16, 2017

It is a consolidating stock since mid-2015. There is technical resistance about $16. It keeps repeating this. If it could break this it would be quite bullish. Until then it is moving sideways.

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It is a consolidating stock since mid-2015. There is technical resistance about $16. It keeps repeating this. If it could break this it would be quite bullish. Until then it is moving sideways.

DON'T BUY
DON'T BUY
May 16, 2017

When times are good, this company makes tons of money. Then, unfortunately, they often make a lot of lousy acquisitions and/or get into other businesses. This company eventually had to eliminate the dividend because they were paying out too much. These are stocks that you “rent” not “own”.

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When times are good, this company makes tons of money. Then, unfortunately, they often make a lot of lousy acquisitions and/or get into other businesses. This company eventually had to eliminate the dividend because they were paying out too much. These are stocks that you “rent” not “own”.

PAST TOP PICK
PAST TOP PICK
February 13, 2017

(A Top Pick Feb 16/16. Up 150.55%.) About a year ago, you couldn’t give resource stocks away. This was into copper and oil and it had a really bad balance sheet. Copper turned around and oil did better. He recently sold his position. He is not as bullish on copper and oil now.

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(A Top Pick Feb 16/16. Up 150.55%.) About a year ago, you couldn’t give resource stocks away. This was into copper and oil and it had a really bad balance sheet. Copper turned around and oil did better. He recently sold his position. He is not as bullish on copper and oil now.

BUY
BUY
January 3, 2017

About a year ago, he was a big fan of this. This is a stock that was trying to find its own way. It didn’t know what it wanted to be. Right now this is a stock that you need to own. It looks great.

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About a year ago, he was a big fan of this. This is a stock that was trying to find its own way. It didn’t know what it wanted to be. Right now this is a stock that you need to own. It looks great.

DON'T BUY
DON'T BUY
August 25, 2016

This would only be for speculators. Copper prices have been falling because demand out of China isn’t as great as it was deemed to be 2 weeks ago. They are a single B credit, which has them in low junk status, because of their debt and low, if not negative, cash flows.

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This would only be for speculators. Copper prices have been falling because demand out of China isn’t as great as it was deemed to be 2 weeks ago. They are a single B credit, which has them in low junk status, because of their debt and low, if not negative, cash flows.

SELL
SELL
July 26, 2016

Short or Buy? This has gone from mid-$50 to below $10. The recent rally to $12.57 may seem impressive, but looking at a 5-year chart, this is still in a major downtrend. Commodities have just finished a major cycle, and going by past history, it takes 3, 5, or even 7 years for big commodity cycles to recover and go back up. He would not hold this one.

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Short or Buy? This has gone from mid-$50 to below $10. The recent rally to $12.57 may seem impressive, but looking at a 5-year chart, this is still in a major downtrend. Commodities have just finished a major cycle, and going by past history, it takes 3, 5, or even 7 years for big commodity cycles to recover and go back up. He would not hold this one.

BUY WEAKNESS
BUY WEAKNESS
June 23, 2016

This had a massive write off. In Canada, material stocks have not written off their balance sheets, and he doesn’t know why. His model price is $10.54, but he would wait for a pullback to around $4.

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This had a massive write off. In Canada, material stocks have not written off their balance sheets, and he doesn’t know why. His model price is $10.54, but he would wait for a pullback to around $4.

DON'T BUY
DON'T BUY
May 3, 2016

This is a materials company, mostly in copper and some in gold. The issue he has is its debt, and how much of an issue that puts them in if we start to see some failure on the commodity side.

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This is a materials company, mostly in copper and some in gold. The issue he has is its debt, and how much of an issue that puts them in if we start to see some failure on the commodity side.

TOP PICK
TOP PICK
February 16, 2016

This is a basket case and has been a disaster. They bought $20 billion of oil/gas assets right at the peak of the market. They levered up the balance sheet and the stock dropped 90% over a period of basically 4 years. Recently got re-permitted in Indonesia. Just sold off some of their copper assets. He could see this trading up around $10-$12 without much difficulty.

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This is a basket case and has been a disaster. They bought $20 billion of oil/gas assets right at the peak of the market. They levered up the balance sheet and the stock dropped 90% over a period of basically 4 years. Recently got re-permitted in Indonesia. Just sold off some of their copper assets. He could see this trading up around $10-$12 without much difficulty.

DON'T BUY
DON'T BUY
January 11, 2016

They have diversified out of just copper. He does not know where the bottom is for this stock.

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They have diversified out of just copper. He does not know where the bottom is for this stock.

DON'T BUY
DON'T BUY
October 29, 2015

He does not think the dividend is safe. It comes down to what you think is going to happen in China. He feels they will continue to slow.

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He does not think the dividend is safe. It comes down to what you think is going to happen in China. He feels they will continue to slow.

COMMENT
COMMENT
August 26, 2015

It is amazing how this has fallen. The one lesson you are constantly taught in this business is that you have to think outside of the box. This is heavily leveraged to the commodity complex, particularly copper and gold. It is a fairly leveraged company, and for that reason free cash just disappears when commodity prices fall. He would prefer Rio Tinto (RIO-N) if he were to go into this area. It has a better profile from a balance sheet standpoint.

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It is amazing how this has fallen. The one lesson you are constantly taught in this business is that you have to think outside of the box. This is heavily leveraged to the commodity complex, particularly copper and gold. It is a fairly leveraged company, and for that reason free cash just disappears when commodity prices fall. He would prefer Rio Tinto (RIO-N) if he were to go into this area. It has a better profile from a balance sheet standpoint.

DON'T BUY
DON'T BUY
February 12, 2015

Copper prices have been very weak. Japan is the driver. He does not see an opportunity at the present time.

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Copper prices have been very weak. Japan is the driver. He does not see an opportunity at the present time.

DON'T BUY
DON'T BUY
December 12, 2014

Found it very strange when they took the company, primarily a copper/gold producer, and decided to bet on oil which was at $110 a barrel. They levered up the company considerably from a position of no debt. He questions their judgment in the last couple of years. Feels the dividend is at risk and they still have a lot of debt.

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Found it very strange when they took the company, primarily a copper/gold producer, and decided to bet on oil which was at $110 a barrel. They levered up the company considerably from a position of no debt. He questions their judgment in the last couple of years. Feels the dividend is at risk and they still have a lot of debt.

BUY
BUY
November 20, 2014

There is going to be a recovery here. Copper is a continuing theme. Sees no problem with the story. It requires a multiyear horizon.

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There is going to be a recovery here. Copper is a continuing theme. Sees no problem with the story. It requires a multiyear horizon.

HOLD
HOLD
November 3, 2014

Copper mining. There is no rush to buy anything here. If you have a wide variety of stocks there is no reason to sell.

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Copper mining. There is no rush to buy anything here. If you have a wide variety of stocks there is no reason to sell.

SELL
SELL
September 30, 2014

Looked at it fairly closely and the one worry was their debt. They would be sensitive to interest rate raises as well as any drop in the commodity prices. Prefers Rio Tinto. It could be a good switch.

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Looked at it fairly closely and the one worry was their debt. They would be sensitive to interest rate raises as well as any drop in the commodity prices. Prefers Rio Tinto. It could be a good switch.

DON'T BUY
DON'T BUY
June 24, 2014

Has had some tough times in terms of stock price over the years. They made a shift into the energy sector and now their focus has moved away from copper and gold. He prefers energy to materials.

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Has had some tough times in terms of stock price over the years. They made a shift into the energy sector and now their focus has moved away from copper and gold. He prefers energy to materials.

DON'T BUY
DON'T BUY
June 12, 2014

(Market Call Minute.) He continues to be quite bearish on copper. Stocks are not performing well.

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(Market Call Minute.) He continues to be quite bearish on copper. Stocks are not performing well.

COMMENT
COMMENT
February 6, 2014

This has caused him a lot of grief on the cyclical nature of the “wait and see” information out of China. He has stepped aside from this. They are up and down, up and down, etc. If you are interested in Trading, now is a great time to buy.

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This has caused him a lot of grief on the cyclical nature of the “wait and see” information out of China. He has stepped aside from this. They are up and down, up and down, etc. If you are interested in Trading, now is a great time to buy.

PARTIAL BUY
PARTIAL BUY
September 24, 2013

An ETF or a stock that would be good in the materials space? In this sector, you are typically talking about things such as gold, copper, silver, metals, mining and fertilizers. He would probably be inclined to go with a name like this which is already started to move up a bit. He would also just take half a position.

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An ETF or a stock that would be good in the materials space? In this sector, you are typically talking about things such as gold, copper, silver, metals, mining and fertilizers. He would probably be inclined to go with a name like this which is already started to move up a bit. He would also just take half a position.

DON'T BUY
DON'T BUY
September 19, 2013

With this you have to have a call on copper prices. Over the next year he thinks copper prices will essentially stay where they are. Previously this was a pure play copper company. Spun off some assets in the energy patch, but eventually bought back. He questions the way they went about buying and the capital they used and was it necessarily in the best interest of the shareholders. Also, this distracted them from their core business. Assets are okay. Stock is going to be a play on what is happening with the underlying commodity and he thinks copper doesn’t do any more than $4 a pound over the next year. Probably fine for a longer-term holder.

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With this you have to have a call on copper prices. Over the next year he thinks copper prices will essentially stay where they are. Previously this was a pure play copper company. Spun off some assets in the energy patch, but eventually bought back. He questions the way they went about buying and the capital they used and was it necessarily in the best interest of the shareholders. Also, this distracted them from their core business. Assets are okay. Stock is going to be a play on what is happening with the underlying commodity and he thinks copper doesn’t do any more than $4 a pound over the next year. Probably fine for a longer-term holder.

DON'T BUY
DON'T BUY
September 3, 2013

US mining company, mostly copper. If you buy this, you have to have a good, long-term expectation that copper is going to do very well. He doesn’t think copper is where you really want to be. Feels the commodity super cycle is finished.

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US mining company, mostly copper. If you buy this, you have to have a good, long-term expectation that copper is going to do very well. He doesn’t think copper is where you really want to be. Feels the commodity super cycle is finished.

BUY
BUY
August 23, 2013

Big base metal companies came off in the summer and he felt there was a spot where you could buy them. This company and BHP Billiton (BHP-N) were almost identical. He just happened to pick BHP because it was a diverse business. On this one you should easily get a 40% rate of return if things turn around.

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Big base metal companies came off in the summer and he felt there was a spot where you could buy them. This company and BHP Billiton (BHP-N) were almost identical. He just happened to pick BHP because it was a diverse business. On this one you should easily get a 40% rate of return if things turn around.

DON'T BUY
DON'T BUY
July 25, 2013

Did like this one but there have been some big challenges in a few of their operations. Thinks there are other operations that are better, such as BHP Billiton (BHP-N) if you want to hold for longer period of time.

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Did like this one but there have been some big challenges in a few of their operations. Thinks there are other operations that are better, such as BHP Billiton (BHP-N) if you want to hold for longer period of time.

DON'T BUY
DON'T BUY
July 16, 2013

Likes this overall but unfortunately right now copper, although it has the best fundamentals of any of the base metals, there is still a fairly large amount of surplus. Too much inventory.

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Likes this overall but unfortunately right now copper, although it has the best fundamentals of any of the base metals, there is still a fairly large amount of surplus. Too much inventory.

DON'T BUY
DON'T BUY
July 2, 2013

An outstanding, well run company and a better investment over the long haul than TCK.B-T. Copper is a big part of FCX and he does not know if they can continue to pay the dividend if copper prices go lower. He wasn’t crazy about their previous acquisitions.

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An outstanding, well run company and a better investment over the long haul than TCK.B-T. Copper is a big part of FCX and he does not know if they can continue to pay the dividend if copper prices go lower. He wasn’t crazy about their previous acquisitions.

BUY
BUY
March 7, 2013

Made some big moves into energy recently, which is disappointing to most institutional investors. In any case, it is still the biggest producer of copper with good exposure to gold. Not expensive. Not his preferred holding in copper anymore.

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Made some big moves into energy recently, which is disappointing to most institutional investors. In any case, it is still the biggest producer of copper with good exposure to gold. Not expensive. Not his preferred holding in copper anymore.

DON'T BUY
DON'T BUY
January 17, 2013

Their announcement in December of entry into the energy business kind of put investors into a sour mood. Stock hasn’t done so well. Has always been a pure play in the copper space and now we have to contend as to whether they are energy or copper and how this acquisition will affect them. Would prefer Teck Resources (TCK.B-T) which he has been buying.

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Their announcement in December of entry into the energy business kind of put investors into a sour mood. Stock hasn’t done so well. Has always been a pure play in the copper space and now we have to contend as to whether they are energy or copper and how this acquisition will affect them. Would prefer Teck Resources (TCK.B-T) which he has been buying.

DON'T BUY
DON'T BUY
January 10, 2013

Last year was a very bad year for them because 1) the whole commodity complex suffered quite a bit and 2) because of some labour disruptions in Asia at one of their major operations. Because of this, their earnings were quite poor. A pure commodity play and he would look for other ways to play a world expansion other than through a pure gold/copper operator. There are operational risks.

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Last year was a very bad year for them because 1) the whole commodity complex suffered quite a bit and 2) because of some labour disruptions in Asia at one of their major operations. Because of this, their earnings were quite poor. A pure commodity play and he would look for other ways to play a world expansion other than through a pure gold/copper operator. There are operational risks.

DON'T BUY
DON'T BUY
January 7, 2013

Basic materials sector is having some money rotate into it. It’s the beginning of a new year where there is optimism and hope that the economy is going to heat up a little bit and maybe commodity prices have a bit of a lift. At this point there is not enough evidence to make a big allocation. This company is in the process of going through a change in the investor base.

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Basic materials sector is having some money rotate into it. It’s the beginning of a new year where there is optimism and hope that the economy is going to heat up a little bit and maybe commodity prices have a bit of a lift. At this point there is not enough evidence to make a big allocation. This company is in the process of going through a change in the investor base.