Insiders have recently purchased almost 3.4 million shares of this mining company. Two analysts have recently increased their 2015 estimates and three have upgraded their 2016 forecasts.
Freeport-McMoRan Inc. (FCX)
From The Personal Capitalist
Freeport-McMoRan Inc. (FCX) is a major resource company with interests in copper, gold, and oil and gas.
This is a John Templeton play, (Buy when others are despondently selling). It’s a classic contrarian choice. The stock is selling not too far from its 52 week low.
FCX one of the world’s largest copper producers and is greatly affected by the drop in copper prices. We feel the company has positioned itself to weather the downturn by improving its balance sheet, cutting capital spending and operating costs. Plans to spin off oil and gas investments will contribute to FCX’s potential. Investor Carl Icahn has taken a major stake in the company indicating his belief in FCX’s future.
Copper has slumped over 25% this year on fears of flagging demand from China, the world’s top consumer. We expect the copper market to move into a deficit in 2016 causing increased demand, and feel that the outlook for the copper market is not as dire as current price levels suggest.
This is a very well-managed company which is taking powerful steps to not only survive but to eventually prosper when commodities turn up.
Sean Christian, The Personal Capitalist, 9524 East 81st Street, Suite B #1715, Tulsa, OK 74133, December 31, 2015