Thursday, October 31, 2013
Freeport-McMoRan Not Just Copper Anymore
The huge gains by Freeport-McMoRan Copper & Gold (NYSE: FCX ) over the last few months probably caught a lot of investors off guard. The company is a premier natural resource company, with a global portfolio of copper and gold assets, and significant domestic oil and gas resources. Somehow, slumping commodity prices for copper and gold haven't crushed the stock. In addition, the purchase of energy assets (with debt) isn't holding down the stock. So what is pushing it higher?
It was beaten during the early parts of 2013 due to a merger that took away the focus on copper production and byproducts. Ironically, the stock has done better than copper focused producer Southern Copper (NYSE: SCCO ). Looking at large energy producers such as Chesapeake Energy (NYSE: CHK ), you can see a shift in sentiment toward more complex energy producers that happen to be laden with debt.
Read the full article here.
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