Freeport-McMoRan: Don't Lose Faith
Freeport-McMoRan continues to trade below $10 per share due to weak copper prices.
The company doesn't expect full production for the Grasberg mine to return until 2021.
The stock is likely to struggle as the company reports weak Q3 cash flows due to copper prices ending the quarter at $2.60/lb.
Buy the stock below $10 for the rebound in 2020 and beyond.
While Freeport-McMoRan (FCX) didn't hold $10, the stock still has substantial value at this level. Copper remains weak due to the U.S. trade war with China, but this trading skirmish won't last forever. The investment thesis remains very bullish on the future of copper and this stock, especially when one can purchase shares below an identifiable value at $10.
Read the full article on Seeking Alpha.
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Disclosure: Long FCX. Please review the disclaimer page for more details.