Stocks like Freeport-McMoRan, Vale and Peabody Energy sell on a construct of normalized 2014 earnings power.
Having said all this, I own Freeport-McMoRan because incremental production is low cost and its balance sheet is unassailable.
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Well, if you want to invest in copper, a good choice is Freeport-McMoRan (NYSE:FCX) as well as the Global X Copper Miners ETF (NYSE:COPX).
We continue to recommend Freeport-McMoran, the largest publicly traded copper producer(FCX), December 2011 calls in copper futures, two Chinese coppper companies, Jiangxi Copper and Philex Mining.
Among the largest underlying components of IYM, in trading today Freeport-McMoran ( FCX) is up about 0.3%, and DuPont ( DD) is lower by about 0.7%.
Among the largest underlying components of CU, in trading today Freeport-McMoran ( FCX) is off about 2.1%, and Southern Copper ( SCCO) is lower by about 1.7%.
Moffett was the founder and chairman of Freeport-McMoRan in 1981, and in 1988 led the company to a giant gold discovery at the Grasberg mine in Indonesia.
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Arguably, the biggest surprise in this news is the desire of a copper and gold miner such as Freeport-McMoRan to become heavily involved in the oil and gas business.
In the meantime, a reflating of the Chinese bubble will be good news for American companies like Caterpillar (NYSE:CAT) and Freeport-McMoRan (NYSE:FCX) that are major exporters to China.
It was Freeport-McMoRan Copper and Gold's discovery and development of Grasberg that propelled that company to be able to take over Phelps Dodge a little more than a year ago.
The big news out of the energy patch today is that Freeport-McMoRan (NYSE: FCX), the largest U.S. copper miner, is getting back into the energy business in a big way.
This latter practice is currently under scrutiny following allegations that an American firm, Freeport-McMoRan, paid millions of dollars to individual officers to protect its copper and gold mine in separatist-ravaged Papua.
Shares in mining company Freeport-McMoRan headed up Wednesday after the company beat expectations for profit with greater production than it expected of its mined copper, gold and molybdenum in the first quarter.
McMoRan is a spinoff from minerals giant Freeport-McMoRan.
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In the deal, Freeport-McMoRan (NYSE: FCX) will also acquire Plains Exploration, which is a big holder of MMR shares that it received when selling Moffett its portfolio of shallow Gulf acreage a few years back.
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Among the largest underlying components of XLB, in trading today DuPont ( NYSE: DD) is down about 0.7%, Freeport-McMoran ( NYSE: FCX) is off about 5.5%, and Monsanto Company ( NYSE: MON) is lower by about 0.3%.
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Mr. Rankin is a co-founder of Freeport-McMoRan.
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Among the largest underlying components of CU, in trading today Southern Copper ( NYSE: SCCO) is down about 1.8%, Freeport-McMoRan ( NYSE: FCX) is off about 7.1%, and Rio Tinto Plc ( NYSE: RIO) is lower by about 5.6%.
Freeport-McMoRan Copper went up 5%.
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Mining giants like Rio Tinto, Freeport-McMoran and Glecore figured the roaring Chinese demand for raw materials would bail them out of any mega- takeover that meant borrowing a bundle of debt to diversify into aluminum or gold or copper was the path to growth, higher profits and ecstatic shareholders.
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Adkerson, President, CEO, and Director of Freeport, is Co-Chairman of McMoRan.
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Freeport McMoran Copper and Gold ( FCX - news - people ) are run out of the same offices.
Freeport McMoRan trades at a discount to its 3-year average price-to-sales ratio of 2.218.
The workers will be hoping for hefty pay rises, following a 37% rise in wages given by Freeport McMoRan Copper in December 2011 to end a three-month strike that had paralyzed output and lifted copper prices.
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Freeport McMoRan will get only 3 tonnes of copper from a 360-tonne truckload at its Irian Jaya copper mine in Indonesia.
March 2011 featured a five-day sell-off in FCX, while a correction in April saw Freeport McMoran slide for seven consecutive sessions.
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Shares in Freeport McMoran are down more than 23% over the past 12-months, trailing the fall in major gold miners like Barrick Gold.
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Casino operators including Wynn Resorts and Las Vegas Sands derive a big chunk of their revenues from the operations in Macau, while major commodity players like Freeport McMoran depend on strong Chinese demand for copper and other metals to drive top-line growth.
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Google, Apple, Amazon, Baidu, IBM, Hewlett-Packard, Deere, Peabody Energy, Arch Coal, Natural Resource Partners, and Freeport McMoRan.
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