We know from the CC that at 2.60 copper and $1200 gold dividend will not have to be cut. As it becomes more apparent that these numbers are holding, share price will work upward. As someone recently posted, there were some 41+ million shares short as of 2/13. That would take over three days to return to more normal levels. The smart shorts are already out of FCX. Be happy that people like bonnano exist. they will have to cover their short positions and that will be additional buying pressure, in the near future IMO.
"Copper surplus seen shrinking on outage at BHPs Olympic Dam" Google it to get article. 2015 output estimate already shrunk 70,000 tons. Dog is on point.
1. How much did the company dilute the share count in the Shaw acquisition?
2. What is the share limit on the current share repurchase plan?
Diversity of their business model a big plus. EPS projections were done in the absence of share repurchases. Share repurchase is a big goal for the next couple of years, to soak up the dilution from the Shaw acquisition.Some covenants prevented more agressive share repurchases last Q. Should be able to move forward more agressively on share repurchase program going forward. Very confident getting significant award from Freeport, see some big and interesting projects in the Middle East. Offshore engineering work out of the Europeann offices. Fabrication work good, retaining nice margins, look to increase efficiency in mfring. Thought out there that "All this cheap oil creating a need for storage" is a thought, but haven't seen it yet. Awards exceed revenues by 1.4 on environmental awards and expect it to continue. Technology/fabrication svcs 35% of backlog, expect 8% plus margins across the board. Share repurchases anticipate eliminate Shaw dilution by end of 2016, may accellerate if divestiture or better than anticipateed cash flow. talked about parts of thw Shaw business that may not be core, but feel can improve those parts, make them more core, and worth more to sell too. Got a couple power projects this year. 70 combined cycle plants may be bid this year. Competitors in that market are "not dozens, athey're a handful. We feel well positioned.
Decreased debt 400 Million in Q4. Repurchased 86 million worthof stock. Q4 Cash flow 613 million(this is huge). 384 million increase in contract capital. after netting out improvements in collections and the delay in one of the nuclear plant constructions. Significant improvement over 2013. On the nuke delay, "the contract is very clear as to who is entitled to what." The nukes are "great projects" have every confidence that we're gonna get there. Locations of most new work "predominately North America" combined cycle power plants. Joint venture with Chevron in china will be "major contributor." Expect to offset any delays in nuclear projects with other parts of the business.
247 million liability will be split between the two consortium partners. Certain contingencies in the accounting that it will not be an impactThe financial guarantor of the Nuclear contract is Toshiba. Once we get through this first of kind desing, the economics on future projects should be "interesting." We're tracking right where we should be and will work thu all the issues with the parties.
Optimism on the backlog of orders. have done a thorough analysis of the backlog. the minimal exposure to upstream projects makes them think they took too big a hit on the stock price. First half of 2015 will likely be softer than the back half. The only thing that would effect his optimism would be a hold on current backlog, which they haven't seen yet. Rev guidance for 2015 and its 14% growth is largely coming from existing backlog.
CBI, an American Company. In essence. 55K employees in America. While other companies are laying off in the Gulf region, CBI is hiring professionals there "with the right skill set." Partnering with area Community colleges. Recent hiring included 2,000 Vets.. Paid corporate income taxes at 27.9% rate. Be proud to own this company.
2014 Revenues 13.0 billion. New work booked 16.0 Billion.
Net income $4.98/share.
95%+ of current 30 billion plus backlog safe from delay secondary to depressed energy market.
2015 estimates Revenues of 14.4 - 15.2 Billions.
EPS range of $5.55 - 6.05/Share
What's not to like? Up a buck after hours.
Good luck to all.
mullam, I've been on this board since FCX bought my PD. I read all your posts and hope you don't stop. Myself, i tend to post in spurts and have been busy at work, but i hope you keep sharing your thoughts on FCX.
wahoo, share price closed above the 50 day today for the first time since 8/20/14. Watch the price of copper, which was up quite a bit today. 2.60 is sort of a magic number as FCX mgt has said at the CC that if copper abovce 2.60 the dividend, which is now around 75 after the last drop to 16/share, will be safe. those might be more important to FCX share price than the economic news you're following. Good Luck, hope you don't make out too much, for my sake.
reddog, I am recommending that you immediately sell a few shares of your FCX, head into Nawlins and immediately reinvest the proceeds in Mardi Gras, ticket symbol : BYOB. let us know how you make out in your investment. Brain
Copper spot, March and may Futures all at/over 2.60. 2.60 copper, 1200 gold 50 Brent Crude means FCX will not cut dividend. People buying at today's price, dividend is about 7%. Chinese Lunar new Year this next week. After that, three month period of bustling commodity consumption.
neil, do you do divi reinvest on FCX? I was thinking of starting that. I'm 58, probably going to work another 9 years. Just been doing it on phone stocks so far, but was thinking about starting it on FCX, CVX and AAPL.
Cleveland, I didn't say that. Did you hear that CC? Do you think that the head of the O&G was honest? This has become a complicated situation.
The Indo govt wants you to divest another 21% ownership? Hell, make it 41%. Form an FCX subsidiary to run Grasberg, give it a lucrative operating contract. Sell as many billions of bonds on the Grasberg asset as you can, pay down debt, build their stinking smelter. Do a 41% public stock offering on the Indo stock exchange on a highly levered Grasberg. Pay down more debt. Hell, buy back shares. You'll probably have the same net copper production once Cerro Verde expansion is full production. You screwed up burying this awesome company in a mountain of debt and obligations. Fix it. And the Board of Directors should make sure that the company dividend is not cut while insiders are making 40 million dollars a year and saddling us with their O&G boondoggles.