A lot of good points grandvn. FCX has definitely lagged. but that's another reason I'm picking it to outperform in 2014. IMO you'll be back above water very soon. Brain
Perhaps. However, vis a vis the over all market, money here has been pretty dead for the year factor in as much dividend income as you wish. BTW, I still have a long position here as I began adding when it retraced through 36 recently. Unfortunately I am underwater on those buys. I expect the div% to stay steady going forward so not worried about those buys but any movement above 38 or so anytime soon may only happen if they do the royalty trust option and get that debt below 40%. Right now it is about 55% and limits what they can do as the board has signaled they do not want that to go up hence the shelving of some exploration and development, selling some assets. Above that, the situation in indo is tentative regarding exports and until that is resolved favorably there is a top on the stock seemingly below 38.
grandvn's blame of the merger for the current stock price is all wet. Yes the share price did drop about 6$ immediately after the 12/5/12 announcement from it's close of 38.28 the day before the mergers were announced but that has all corrected. Plus you've received over $2.20/sh in dividends if you held over the past year. Back when the share price was 38.28 on 12/4/12 spot copper was at over 3.60/lb. Today it is at 3.25/lb. Gold on 12/4 was around 1,700/oz. Today its under 1,300/oz. Might the price of goods sold affect the share price ?! Duh. The price of FCX today is only helped by the merger as the O & G assets contributed significant net income to the company last Q and provide security of diversification. Also, look at the warehouse levels over the past 5 months, copper has been coming out of the LME warehouses at a rate of over 50,000 tons a month for the past 5 months. The relatively low copper prices allow for folks to play the arbitrage by buying out of the LME and selling into China at the higher prices there. And the copper in china is getting used up faster than it is being imported, as shown by the SHFE warehouse levels dropping from over 220K tons to under 150K tons during that same time. IMO the share price of FCX is about to double in 2014, due to the production deficit on copper worldwide that is about to send spot back over $4, as evidenced by the warehouse changes the past 5 months. There is still enough copper in the LME to allow some sense of security to copper users for another couple months, but I'm long and
stronger every day that the LME drops another 4K tons.
Yo' Hans .... " you can't lose on something you've never had " prices are way too high on that one for me !!!
Folk`s miss here miss there Gleebert made a bad call. WE now should call him tweeter dee tweeterdum !!! Within 2 trading day`s Miss here Miss there Gleebert lost you 25% . You can thank me now Dolly and Linn!!! Call ME.......