Copper prices are on the move up, and so is the momentum in this mining company’s shares. The company beat its earnings estimates by $0.08 per share last quarter, and eight analysts have increased their estimates in the past 30 days.
Freeport McMoran (FCX)
from The Heartland Adviser
Oil is not the only undervalued commodity on the trading floor. Mined metals such as gold, silver, and copper are trading at discounted prices. Freeport McMoran (FCX), a mining company that produces gold and copper commodities, is a long time Russ Kaplan Investments holding.
The August 28th issue of the Wall Street Journal announced that investor Carl Icahn purchased an 8.5% stake in Freeport McMoran. Carl Icahn, like us, believes these commodities are trading lower than their intrinsic values. Intrinsic value is the actual value of a company, an asset, (in this case, a commodity) based on an underlying perception of its true value including, both tangible and intangible factors.
We focus on finding investment opportunities where the intrinsic value is higher than the current market valuation. That is an important indication of what makes a good company translate into a good investment for us. Gold, copper, and silver, along with Freeport McMoran, are good investments for the long term.
Russ Kaplan, Heartland Adviser, www.russkaplaninvestments.com, 402-614-1321, September 4, 2015