When the Indonesian contract situation is resolved......and if a win win for both parties....you will see FCX jump $10 pps basically overnight. Very risky to be shorting FCX during contract renegotiation time!
that is a very interesting question. I wonder too why there has been so little consolidation in the mining space. Over leveraged balance sheets is a big part of it as there is a great deal of value. ABX and NEM have tried a few times to merge, but big personalities get in the way. FCX could be split in to at least 2 parts and many pieces could be sold individually by any buyer. I could even see venture capital taking a stab at this.
Some catalyst is needed to break the trend in the doldrums. A major acquisition. A large contract position on metal. A big spike in demand. Or a credible source stating the issues of the looming copper deficit. FOr all we read on this -- no one dares to venture a possible price to the metal based on this. It is a commodity --- and any guess will be wrong in number or timing --- but start throwing $4 copper numbers around for the year 2018 for example -- and suddenly forecasts will change. That price would amount to $3 BB in revenue and much of that profit to the tune of $3 / share. What would that do to the stock price
good post. Growth globally has been anemic for the amount of stimulus applied. How come ? I suspect that the level of debt being carried in both the private and public sectors is a big part of it. On the one hand, its hard to get extended credit when you are already loaded with debt. On the other, many don't want debt like they used to after seeing the travails of the Great Recession. So, they bypass cheap money to pay down their debts.
But, my premise here is that there are indicators popping up that will impact commodities. Even low inflation will price immediately in to commodities (raw materials). It has been a long down cycle and I simply look at the many triggers that will move the needle. What does intrigue me is that there has yet to be any M & A activity in the mining space. Perhaps this too is a function of over leverage
Wahoo POS wants everyone to think he's a skilled and successful trader, but , in reality, if one were to examine the paper trail of his trades, the results would show he's an abysmal failure. He's like a little kid that dreams of playing baseball in the major leagues and hitting the home run in the World Series. In his mind, he sees himself trotting around the bases with the crowd cheering him on, but, in reality, he's running around the perimeter of his backyard and the silence is deafening.
All the big pundits see copper as the smart move. We're going in the wrong direction again price wise. This is a tough long term stock to hold. A lot of bad decisions.
You do realize you'll go straight to Hell for your wicked ways, the way you treat your fellow man and your sick and twisted attitude. Grow up and become a human being.
they all love copper. Why not acquire fcx while it is still cheap?
In an interview last week, the head of the world’s biggest mining company painted a gloomy picture for the industry. BHP’s Andrew Mackenzie said that in all the minerals markets in which it operates, any demand increase can too “easily’ be met by expanding existing mines. One exception he sees is copper.
‘‘The demand picture appears to be improving fast and seems to be the main factor supporting the price recovery,” Kevin Norrish, a mining analyst at Barclays Plc, wrote in a May 18 report.
For Rio Tinto, the world’s second-biggest miner, copper is proving to be an antidote to a collapse in the price of iron ore, responsible for 81 percent of its 2014 profit. This week, Rio signed a long-awaited accord with Mongolia’s government letting it expand the Oyu Tolgoi gold and copper mine.
Afterward, Jean-Sebastien Jacques, the head of Rio’s copper unit, gushed about the red metal’s prospects, stating “we love copper.”
Jacques said in an interview that “supply is very challenging in copper and when you look at the next 10 years there’s a clear shortfall of around 8 million tons.” That’s equivalent to about eight mines the scale of Escondida in Chile, the largest copper mine.
“It took nearly 25 years to build Escondida, so therefore we’re pretty bullish about copper,” he said.
The chief executive officer of Antofagasta, the Chilean mining company that’s the world’s ninth-largest producer, also fails to see a market glut this year.
“The large supply surplus that has been forecast for the past couple of years has been like a bow wave being pushed out in front of us but never materializing,” Diego Hernandez said.
Disruptions at operations owned by BHP and Freeport-McMoRan have fueled speculation that a global surplus of the metal will disappear. Macquarie expects a copper deficit of about 40,000 tons this year. The bank forecast a surplus of 104,000 tons in January, down from an October estimate of 475,000 tons.
One of the most outspoken critics of oversupplied markets is Glencore CEO Ivan Glasenberg, who last week accused the biggest miners of damaging the industry’s credibility and creating a “crisis of confidence.” Even he sees copper bucking the trend of swollen metals markets.
“We believe copper is moving into a deficit,” he said at a meeting of Glencore shareholders on May 7. “Consensus has always said there is a surplus. The grades are going down. People are struggling to hold their current production
the great thing about trading FCX is I know how much I made, and I know how much you ignorant idiot longs made holding for 5 cent divi as it goes down. lmao lol lmao lol mlao lol mlao
longs how much did you make this week holding FCX? what you idiots don't realize is i also sold calls and bought puts for my long position while i made profit of epic proportions trading fcx. ALL THE WHILE YOU IDIOTS LOST. LMAO LOL LMAO. AND YES, I AM RUBBING IT IN. LMAO
OK Mull I understand your answer to 1 ( the question about the car). It makes sense. BUT it sounds like you're contradicting yourself when you answer question 2 on commodities. In your first reply to me you said "a strong dollar lowers commodity prices" and in your second reply you said a "strong dollar makes copper more expensive". Both replies cannot be correct. The WSJ wrote that a strong dollar lowers the price of copper. So the confusion continues - at least on the copper issue- in my mind. Paul
My feeling's too '44 but right now Mr. market is fragile & more worried about the yellen wind blowing coming up today, dollar strength, a rate bump etc. etc. Personally I think what we already have working is a stagflation environment....moderate to weak growth right along with some stealth inflation. Which is very likely to turn into full blown inflation before too many month's pass when money velocity pick's up. Why would it pick up ? Probably because co's have already cut & slashed to a great extent & the only way left to make those qtrly number's is to raise prices. One has to remember we have had unprecedented low rates/easy money & fed manipulation the last 7 year's with weak economic number's so the word INFLATION is not really on the front burner with most market participant's right now. The fed might get the worst of both world's before their through, lower bond prices, higher inflation & very tepid growth. As for FCX, BHP etc while I like the tech setup unfolding right now be watchful of the S&P....we have had a helluva run[O/B] & ANY surprises in the day's ahead & at the least a general market mini dump could take BOTH lower regardless of the fundamental's ! GL
FCX LONGS are ignorant idiots to the Nth Degree. rumors of buyout. lol lmao lol mao
upgrades by 4 banks lol lmao lol lmao lol lmao lol mlmao