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.