Why Freeport-McMoRan Isn't Expensive Even Above $20
Copper prices have rocketed above even the targets used in the copper miners' presentations.
Freeport-McMoRan is highly cash flow positive at copper prices around $2.50 pound.
The stock offers interesting value even after the huge surge in the stock price.
The recent copper rally apparently caught most investors and analysts off guard. Analysts are either scrambling to upgrade the stock or discredit the rally.
The long misunderstood story with Freeport-McMoRan (NYSE:FCX) was that the copper miner needed higher prices in order to clear the debt issues. In reality, the current copper prices might be enough for the company to thrive. The question now is when to lock in gains.