That $FCX deal was ugly for share holders. In some ways, similar to the $LUK / $JEF deal in that tax code changes for leadership may have fueled the deal timing. But unlike the $LUK/$JEF deal (which while originally panned, has great financial benefits with the NOL assets) the $FCX deal is just a defocused mess, driven by the Chairman of both co's Moffett. The phrase "conflict of interest" comes to mind.
While copper did move well today to a new swing high, we see much of the move in $SCCO as investors swapping out of $FCX (and their soon 30% risky wildcat energy exposure).
$SCCO is clearly on the way to the dividend created gap fill to $38.03 and possibly more. Could be a great candidate for a 2012 special dividend or at least a div acceleration.
Our gap fill target was met on Friday, but today's follow-on suggests there is more upside to come. With China looking stronger, the 52wk high close of $38.94 and intraday high $39.44 are clearly in play. And if they cross and close above?
Gets rich fast... Looking at the Nov '10 weekly high close $46.63. and on to the $50.35 2011 high.