Freeport-McMoRan: Yard Sale
Freeport-McMoRan continues to make counter intuitive counter moves.
The dumping of a prized copper mine at the lows in the cycle and paying drilling rig cancellation fees are prime examples of questionable management decisions.
The reason to own Freeport-McMoRan is quickly disappearing as the company unloads valuable copper mines in a yard sale fashion.
Not long after suggesting Freeport-McMoRan (NYSE:FCX) was proving its mettle due to improving cash flows, the company has turned exceptionally aggressive in dumping copper assets and eliminating drilling rig contracts. The moves provide the company with some net cash and reduced costs, but one has to wonder what is left of the company if even more asset sales occur.
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