Out Fox The $treet

Freeport-McMoRan stock has dipped back to $40 with copper prices slipping back to $4/lb. Copper prices are set to rebound on a full China reopening and higher EV production levels. The stock will rally on higher copper prices while Freeport-McMoRan only trades at ~5x adjusted EBITDA targets. The China reopening has struggled to gain the expected steam due to an initial bout of high covid cases followed by the Chinese New Year.  Freeport-McMoRan  ( NYSE: FCX ) will ultimately benefit from the  surge in demand as the whole world throws resources into building EVs with high copper requirements. My  investment thesis  remains ultra Bullish on the copper miner, as lower copper prices have weakened the stock price since the start of 2023. Read the full article on Seeking Alpha.  Disclosure: Long FCX. Please review the disclaimer page for more details. 

Updated - Jan. 6 People not buying FCX  the last couple of months missed out big time. The copper miner appears headed to $50 and even $60.  Freeport McMoran ( NYSE: FCX )  +6%  in Friday's trading, placing it near the top of the day's S&P 500 leaderboard and capping an 11% gain for the week, as copper prices rise on hopes that China's efforts to  boost its economy  will improve demand for metals . Comex copper for March ( HG1:COM ) delivery recently  +2.5%  to $3.917/lb, while the most-traded February copper contract on the Shanghai Futures Exchange ended  +1.5%  to 65,060 yuan/metric ton ($9,460). Original article posted on Dec. 18 Green energy demand will continue to push copper prices higher over the next decade. Freeport-McMoRan is already highly profitable at current copper prices and the path appears for record prices above $5/lb in the years ahead. The copper miner could produce $12+ billion in EBITDA. The stock is cheap at o...

  Freeport-McMoRan now trades below a market cap of $45 billion despite delivering $12 billion in adjusted EBITDA over the last year. The copper miner is set to ride the wave of higher copper demand from China. The stock is cheap at current copper prices and only trades at 3x EBITDA targets for $5/lb copper. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Like most commodities, copper has been crushed over the last few months, sending  Freeport-McMoRan  ( NYSE: FCX ) down for the year. The global economic weakness centered on China sent copper prices down to 20-month lows, but the communist country is back in  growth mode. My  investment thesis  is ultra bullish on the stock after the dip due to the ultimate strong demand for copper. Read the full article on Seeking Alpha.  Disclosure: Long FCX. Please review the disclaimer page for more details. 

  Freeport-McMoRan continues to benefit from high copper prices despite the recent dip from levels near $5/lb. At $4.50/lb, the copper miner produces FCFs in the $8 billion range and EBITDA reaching $15 billion. The stock is too cheap with a market cap of just $54 billion with the bullish long-term demand trend due to EVs. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.    Learn More » Freeport-McMoRan  ( FCX ) fell to nearly $30 on fears of slowing Chinese demand for copper, yet copper prices remain sky high. At current prices, the copper miner is poised to generate billions of dollars in annual free cash flows. My  investment thesis  is Bullish on the stock in the mid-$30s, though investors should take some profits due to the historically volatile prices for the red metal. Read the full article at Seeking Alpha.  Disclosure: Long FCX. Please review the disclaimer page for more details.  ...

Stocks to watch on Tuesday: Freeport-McMoRan (FCX) - as expected, no deal exists with China. The copper miner is a buy on weakness into the $9 range. The stock has capped upside at $12 until a trade deal is done. Twitter (TWTR) - Dorsey is headed to live in Africa next year. Investors should demand a new CEO with a vote for hiring Noto back from So-Fi. The CEO has turned around the company, but Jack has now striked out on several opportunities to develop Periscope and Vine into major revenue producing assets. Not to mention, the opportunity exists for premium services and recurring revenue streams that he hasn't made any moves towards. More research: Twitter Should Spend More Disclosure: Long FCX, TWTR. Please review the disclaimer page for more details. 

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.  More commentary - WhoTrades Disclosure: Long FCX. Please review the disclaimer page for more details. 

As copper prices rebound, Freeport-McMoRan (FCX) will soar back to previous highs. The stock hit near $20 last year as copper prices headed to the mid-$3 range before the Chinese trade war hit demand.

The amazing part of Freeport-McMoRan hitting new lows at $10 is that copper prices have held up relatively well at $2.70/lb. The company highlighted a position of solid cash flows with copper up at $2.85/lb. The recent weakness gets the copper miner closer to breakeven levels on a free cash flow basis, but all of the upside is in a trade deal with China that boost copper prices. Back above $3/lb, FCX starts generating up to $3 billion in annual FCFs. Much higher prices are all but inevitable as the market weakness derails new mines. Use this weakness for the ultimate entry point here for a stock with a market cap down to only $14 billion. The only problem here is that the stock could head lower. The chart shows a never ending downtrend.

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. Read the full article on Seeking Alpha. Disclosure: Long FCX. Please review the disclaimer page for more details. 

Freeport-McMoRan missed Q3 analyst estimates. The copper miner made huge strides in proving the cash flow thesis. The stock trades at an attractive valuation now that cash flows are set to pay for debt reduction. Freeport-McMoRan (NYSE: FCX )  spent the last year cutting capital expenses and reducing costs to improve cash flows. The biggest story in the next few quarters is to see whether the copper miner makes the necessary progress towards those solid cash flows and current copper prices. Read the full article on Seeking Alpha.  Disclosure: Long FCX. Please review the disclaimer page for more details. 

Freeport-McMoRan agrees to dump the Deepwater Gulf of Mexico assets once coveted. The large copper miner is again dumping assets at the lows in the commodity cycle. The company is now positioned for any upside in copper prices. After the close,  Freeport-McMoRan (NYSE: FCX )   announced  the move to unload oil and gas properties to  Anadarko Petroleum (NYSE: APC ) . The move is consistent with plans announced by the copper miner to unload assets in a goal to reduce debt levels. Read the full article on Seeking Alpha. Long FCX. Please read the full article on Seeking Alpha.

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. Read the full article on Seeking Alpha.   Disclosure:No positions mentioned.Please read the disclaimer page for more details.

Freeport-McMoRan reported mixed Q1 results. The copper miner made huge strides toward becoming free cash flow positive as the oil and gas division becomes less of a drag. The stock is likely heading higher as the cash flow position turns very positive heading into 2017. The  investment theme  at the lows in the stock was that  Freeport-McMoRan (NYSE: FCX )  was in a substantially better cash flow position than predicted by the stock price. The solid  Q1 results  confirm the simple path to reach positive free cash flow this year. Read the full article on Seeking Alpha.   Disclosure: Long FCX. Please read the disclaimer page for more details.

Freeport-McMoRan monetizes part of the Morenci mine at an attractive valuation to reduce the debt crunch. Even after the recent rally, the stock is down substantially over the last two years. With plenty of other copper assets, the debt fears should quickly fade as the S&P downgrade likely signaled the panic lows for those fears. The news that  Freeport-McMoRan (NYSE: FCX )  reached an agreement to monetize part of a copper mine was a game changer for the stock. Though the company took copper and gold out of the official company name, investors made a big mistake taking a focus away from those two commodities. The stock is now surging towards $7.50 following a massive rally. At this point, one has to wonder if the rally doesn't need a pause, but investors need to remember where the stock came from in the last couple of years.  Read the full article on Seeking Alpha.  Disclosure: No positions mentioned. Please read the disclaimer page for mor...

Not too surprisingly, Freeport-McMoRan (FCX) has rallied while oil keeps plunging. Too many investors confuse the stock for the oil operations, but the company is still primarily focused on copper. The company will not only survive, but thrive if copper prices stay above $2/lb. At the current price of roughly $2.10/lb, Freeport-McMoRan should be free cash flow positive. As I highlighted in my last Seeking Alpha article, the risks of bankruptcy were largely overblown. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

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.

Freeport-McMoRan faces a tough road in 2015 due to cash flow concerns and low copper prices. The company has much better prospects heading into 2016 with better cash flows from reduced capital spending and the outlook for copper prices. The stock should remain a prime an investment target for 2016. The story for Freeport-McMoRan (NYSE: FCX ) continues to remain relatively simple. The stock will move in relation copper prices over the long term. As highlighted in Freeport-McMoRan: Focus On Copper Prices, Not Earnings , the miner obtains the majority of revenues and cash flows from the copper mines. Read the full article at Seeking Alpha. Disclosure: Long FCX. Please review the disclaimer page for more details. 

Summary Freeport-McMoRan reported Q1'15 results that were slightly better than expected. Despite attempts of diversifying into oil and gas, the company remains squarely focused on copper. The negative prospects for copper prices and low cash flows leave us on the sidelines for now.    After reviewing the Q1'15 earnings for Freeport-McMoRan (NYSE: FCX ), it quickly becomes clear that investors should shift focus away from earnings and back onto copper prices. Outside of concerning debt levels and capital expenditures, the future of the miner and more importantly the near-term stock price is all dependent on copper. Read the full article on Seeking Alpha.  Disclosure: No positions mentioned.  Please read the disclaimer page for more details.

 Despite the ongoing supply limiting issues in Indonesia, Freeport-McMoRan Copper & Gold ( NYSE: FCX     ) offers a plethora of growth for the long term.  Freeport-McMoRan remains known as the proxy for copper and a large global miner, but the company offers several growth projects, including the ability to substantially grow oil and gas production.  Read the full article here  Disclosure: No positions mentioned. Please read the disclaimer page for more details.

After decades as an onshore and shallow water drilling specialist, Rowan Companies plc ( NYSE: RDC     ) is quickly shifting toward a mix of deepwater drillships. The company has four ultra-deepwater (UDW) drillships either recently starting operations or under construction. With the recent announcement of a contract for the last of the four drillships, the driller now has secured contracts for all of the UDW ships through mid-2017. The recent contract signed with Freeport-McMoRan Copper & Gold ( NYSE: FCX     ) has mostly positive indications for Rowan, which is good as the company began the year with a substantial amount of rigs rolling off contract. Also noteworthy, Noble Corp. ( NYSE: NE     ) didn't obtain this contract after securing a couple of deals for new drillships with Freeport-McMoRan starting operations soon. Read the full article here . Disclosure: No positions mentioned. Please read the disclaimer page...