IB Net Payout Yields Model

Freeport-McMoRan: Copper Prices Heading Lower Will Hurt


Summary

  • Freeport-McMoRan will struggle if copper prices head below $2.50/lb for an extended period.
  • The company faces a large reduction in cash flow expectations from the lower copper prices.
  • Freeport-McMoRan holding $16 sets the stock up for a potential bounce, but it appears unlikely to hold due to copper prices.
   Despite some positive long-term expectations for the copper market, the current issues in China crushed the commodity over the last couple of months. Unfortunately, for Freeport-McMoRan (NYSE:FCX), the prospects of the company (see Freeport-McMoRan: Positive Prospects For Copper) are all built on copper prices that aren't faring so well now.

 Read the full article on Seeking Alpha.


 Disclosure: Long FCX. Please read the disclaimer page for more details.

Comments

Unknown said…
Thank you for sharing. I really liked your post. Instead, I would like to share with you here this link http://coinschecker.com/ . On this site you will find information about Copper.

Popular posts from this blog

Aurora Cannabis: Deal Or No Deal

C3.ai: Trough Quarter

C3.ai: Out Of Steam (Rating Downgrade)