FeedPosted Apr 4th 2011 10:30AM by Connie Madon (RSS feed)
Filed under: International Markets, Industry, China, BHP Billiton Ltd ADR (BHP), Freep't McMoRan Copper (FCX), Commodities
Copper was the darling of commodity traders. The price rallied from about $6,400 per ton to a record $10,190 in the past year, The Financial Times reports. Momentum was strong and it looked like there was no end in sight. But now, prices have dropped off a bit and miners are worried that the rally has hit a brick wall. The main concern is that what drove drove prices skyward -- China's demand -- may be slowing, according to the FT.
One indication of the slowdown is the amount of stocks held in exchange warehouses. At the LME Asia + Shanghai exchange warehouses, copper stocks have increased from below 150,000 to over 325,000 tons. That buildup has worried miners. The companies affected are Freeport MeMoRan (FCX), BHP Billiton (BHP), Xstrada (XSRAF), Anglo American and Brazil's Codelco, according to the Financial Times.
Continue reading Miners Hedge Copper Inventories as Demand from China Slows
Posted Mar 28th 2011 12:00PM by Eric Buscemi (RSS feed)
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, AT and T (T), Verizon Communications (VZ), Alcatel-LucentADS (ALU), Marriott Intl'A' (MAR), Analyst Initiations, Freep't McMoRan Copper (FCX)
Analyst Upgrades
- Alcatel-Lucent (ALU) to buy from neutral at Goldman.
- Nvidia (NVDA) to outperform from market perform at JMP Securities.
- Verizon (VZ), AT&T (T), Leap Wireless (LEAP) and MetroPCS (PCS) to outperform from neutral at RW Baird.
- Illumina (ILMN) to buy from hold at Auriga.
- Sun Bancorp (SNBC) to neutral from sell at Janney Capital.
- American Tower (AMT), SBA Communications (SBAC) and Freeport McMoRan (FCX) to overweight from equal weight at Morgan Stanley.
Continue reading Analyst Calls: ALU, BTU, FCX, LEAP, MAR, NTRS, NVDA, PCS, T, VZ ...
Posted Mar 24th 2011 8:50AM by Paul Foster (RSS feed)
Filed under: Options, Freep't McMoRan Copper (FCX), Commodities

Freeport McMoRan (
FCX) closed up 5.1% to $54.96. Copper prices were up 2.84%, according to Bloomberg, on expectations demand will outpace supply. April and May 55 calls are active. Overall option implied volatility of 42 is near its 26-week average of 43, according to Track Data. Active options volume suggests a probability for larger standard deviation movement.
iShares Silver Trust (
SLV) closed up 2.6% to $36.46. as silver rallied 2.4% to $37.17 according to Bloomberg. April 37 and 40 calls are active, suggesting hedging for price movement.
Update is by Stock Specialist Paul Foster of theflyonthewall.comPosted Mar 18th 2011 2:30PM by Trefis (RSS feed)
Filed under: Freep't McMoRan Copper (FCX)
Freeport McMoran Copper (FCX) is involved in mining, smelting and refining of coper, gold and molybdenum. The company runs its mining and smelting operations in North and South America, Indonesia and Africa. Freeport competes with other miners such as Southern Copper (SCCO), Codelco and Newmont Mining (NEM).
Freeport's extensive copper mining operations are its biggest source of value – more than 73% of our $63.42 base price estimate for Freeport's stock. Our price estimate currently stands about 25% ahead of market price. The company's mining and production of gold makes up for most of its remaining value. Here we try and explain how the outlook for gold prices in the years to come can affect Freeport's stock price.
Continue reading How Much Glitter Does Gold Add to Freeport's Stock?
Posted Feb 16th 2011 10:00AM by Jason Raznick (RSS feed)
Filed under: India, Freep't McMoRan Copper (FCX), Commodities, Stocks to Buy, ETF
By now, most investors have heard the rallying cry of this market: "Just buy the dip!" However, the tape has been so strong that it can sometimes be difficult to find substantial dips that provide a good, low-risk entry point to begin building a position. But some potentially promising opportunities do exist. The first of these is an ETF that tracks the Indian stock market -- the iPath MSCI India Index ETN (INP).
This ETF has lost around 13% over the last three months and a little more than 4% during the last month. Year-to-date, it is down more than 14% as Indian stocks have been hurt by interest rate hikes, which have been instituted to try to tame inflation.
Continue reading Buy the Dip: Indian ETF, Freeport-McMoran
Posted Jan 21st 2011 12:00PM by Eric Buscemi (RSS feed)
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, Analyst Initiations, Freep't McMoRan Copper (FCX)
Analyst Upgrades
- Heico (HEI) to outperform from market perform at FBR Capital.
- Eaton (ETN), Silgan Holdings (SLGN), MYR Group (MYRG) and Shaw Group (SHAW) to outperform from neutral at RW Baird.
- Infosys (INFY) to buy from Neutral at Nomura.
- Isle of Capri (ISLE) to buy from neutral at Merriman.
- NovaGold (NG) to sector perform from underperform at RBC Capital.
- CarMax (KMX) and Rockwell Collins (COL) to outperform from neutral at Credit Suisse.
- DHT Holdings (DHT) to overweight from neutral at JPMorgan.
- Cabot Oil & Gas (COG) to overweight from underweight at Morgan Stanley.
Continue reading Analyst Calls: CB, COL, ETN, FCX, FRO, INFY, KMX, NAT, SHAW, SON ...
Posted Jan 20th 2011 11:30AM by Tom Taulli (RSS feed)
Filed under: Freep't McMoRan Copper (FCX)
With the surge in copper prices -- and other industrial and precious metals -- it was no surprise that Freeport-McMoRan Copper & Gold (FCX) had a great quarter. Net income rose 60% to $1.55 billion or $3.25 per share. Excluding a $0.01 charge, the earnings handily beat the consensus of $3.03. As for the top line, revenues increased 22% to $5.6 billion. The Street estimate was for $5.47 billion.
Despite all this, the stock was off nearly 6% early Thursday. No doubt, one reason is that it has had a strong run over the past few months and the valuation was getting overextended.
Continue reading Freeport-McMoRan's Forecast Overshadows Strong Quarter
Posted Oct 27th 2010 10:00AM by Steven Halpern (RSS feed)
Filed under: International Markets, Newsletters, ETF Investing, Freep't McMoRan Copper (FCX), Commodities, Oil, Agriculture, Stocks to Buy
"Last year's Chilean earthquake and the recent mine disaster have an important lesson: Countries with really good management should be strongly considered by investors," says Martin Hutchinson.
Hutchinson adds, "Well managed countries will be more efficient. they will use resources and labor better, there will be fewer sink-holes of value destruction in the public sector and the uncompetitive private sector and they will generally be more open to new ideas and new techniques.
Continue reading Investing in Chile: From Mines to Wines
Posted Oct 26th 2010 11:30AM by Eric Buscemi (RSS feed)
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, Brinker Intl (EAT), Chevron Corp (CVX), CVS Corp (CVS), Marriott Intl'A' (MAR), Analyst Initiations, Freep't McMoRan Copper (FCX), Travelers Companies Inc. (TRV)
Analyst Upgrades
- Verisk (VRSK) was upgraded to outperform from market perform at Wells Fargo.
- Marriott (MAR) was upgraded to outperform from market perform at Bernstein.
- Jefferies upgraded Teekay (TK) and Tsakos Energy (TNP) to Buy from Hold.
- Cadence Design (CDNS) was upgraded to sector perform from underperform at RBC Capital.
- BofA/Merrill upgraded NV Energy (NVE) to buy from underperform and Education Realty Trust (EDR) to neutral from underperform.
- Men's Wearhouse (MW) was upgraded to buy from hold at Stifel.
- William Blair upgraded Atheros (ATHR) to outperform from market perform.
- Freeport McMoran (FCX) was upgraded to buy from hold at Argus.
Continue reading Analyst Calls: CTV, CVX, EAT, FCX, ICE, MAR, MW, TRV, WLP ...
Posted Sep 22nd 2010 5:40PM by Paul Foster (RSS feed)
Filed under: Sears Holdings (SHLD), Options, Freep't McMoRan Copper (FCX)

Freeport McMoRan (
FCX) closed up $1.52 to $84.51. Copper prices closed up 2.54% according to Bloomberg. Overall option
implied volatility of 40 is near its 26-week average of 43 according to Track Data, suggesting non-directional price movement.
Sears Holding Corporation (
SHLD) closed up $3.62 to $71.77. SHLD October
call option implied volatility is at 38, puts are at 54. This is versus its 26 week average of 42, according to Track Data. Active volume suggesting larger price movement. Puts are trading higher than calls on SHLD being difficult to borrow.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.Posted Sep 20th 2010 11:30AM by Eric Buscemi (RSS feed)
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, AT and T (T), Best Buy (BBY), Research in Motion (RIMM), U.S. Steel (X), Nucor Corp (NUE), Analyst Initiations, Freep't McMoRan Copper (FCX)
Analyst Upgrades
- Credit Suisse upgraded AT&T (T) to outperform from neutral and has a $35 target on the stock. Credit Suisse believes the impact from AT&T's loss of iPhone exclusivity will be less than expected and that the stock should benefit from its earnings growth and dividend yield.
- Goldman upgraded Freeport McMoRan (FCX) to buy from neutral and raised its price target to $94 from $79 based on improving copper fundamentals.
- Benchmark Co. upgraded Valueclick (VCLK) to vuy from hold on expectations Google Instant (GOOG) could drive marketing traffic. The firm raised its target price for Valueclick shares to $15 from $11.
- Best Buy (BBY) was upgraded to outperform from perform at Oppenheimer.
- Research In Motion (RIMM) was upgraded to buy from sell at Societe Generale.
- CarMax (KMX) was upgraded to outperform from market perform at Wells Fargo.
Continue reading Analyst Calls: BBY, FCX, KMX, NUE, PRGS, RIMM, T, USG, VCLK, X ...
Posted Jul 22nd 2010 11:30AM by Eric Buscemi (RSS feed)
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, Netflix, Inc. (NFLX), Analyst Initiations, Freep't McMoRan Copper (FCX), Wells Fargo (WFC), Trina Solar ADS (TSL)
Analyst upgrades:
- CLSA upgraded Freeport McMoRan (FCX) to Buy from Sell and has a price target of $85 based on expectations for improved copper prices. The analyst believes China is mostly done with tightening measures and that downside in copper prices is limited.
- Jefferies upgraded Concur Tech (CNQR) to Buy from Hold due to improvements in corporate travel and structural growth drivers from international and SMB. The firm has a price target of $55 on the stock.
- Deutsche Bank upgraded ESCO Technologies (ESE) to Buy from Hold on expectations the company will announce a contract with SoCal Gas within two months. The firm upped its target for shares to $35 from $33.
- Wells Fargo (WFC) was raised to Outperform from Market Perform at FBR Capital.
- Human Genome (HGSI) was upgraded to Outperform from Neutral at Baird.
- Brown & Brown (BRO) was upgraded to Neutral from Underweight at JP Morgan.
Analyst downgrades:
- Canaccord downgraded Netflix (NFLX) to Hold from Buy following the Q2 report and has a $107 price target on the stock. The firm is growing more cautious on ARPU pricing pressure, higher churn rates and higher SAC.
- Deutsche Bank downgraded Airgas (ARG) to Hold from Buy following the company's Q1 results due to valuation. The firm has a $65 price target for shares. Note shares were also downgraded at Soleil this morning.
- Goldman downgraded Piper Jaffray (PJC) to Neutral from Buy and lowered its price target to $35 from $46. The firm said Piper's ROE remains below peers.
- AMB Property (AMB) was downgraded to Neutral from Buy at BofA/Merrill.
- Odyssey Healthcare (ODSY) was downgraded to Negative from Neutral at Susquehanna.
- Trina Solar (TSL) was downgraded to Outperform from Strong Buy at Raymond James.
Analyst initiations:
- BofA/Merrill started Cognizant Technology (CTSH) with a Neutral rating.
- Stifel Nicolaus initiated Brigham Exploration (BEXP) with a Buy rating and $24 target.
- ThinkEquity assumed Dick's Sporting (DKS) with a Buy rating.
- Petrohawk Energy (HK) was initiated with a Perform rating at Oppenheimer.
- E.ON AG (EONGY) was initiated with a Buy rating at RBS.
- Atlas Energy (ATLS) was initiated with an Outperform rating at BMO Capital.
Posted Jul 9th 2010 9:30AM by Jason Raznick (RSS feed)
Filed under: Freep't McMoRan Copper (FCX)

Shares of mining giant Freeport-McMoran (
FCX) have been beaten down in 2010 after producing tremendous gains in 2009. Year-to-date, Freeport has fallen nearly 22% and the stock currently changes hands for around $62.50. It appears that
sentiment in FCX may be changing, however, and if momentum swings the other way, big gains likely lie ahead for this stock.
Freeport-McMoran, through its wholly owned subsidiary Phelps Dodge, is a copper, gold, and molybdenum mining company. The stock is highly correlated to copper prices, which are in turn extremely dependent on Chinese demand. China is the world's
fastest growing economy and, as such, is the engine that is driving global growth right now.
Continue reading Trend Reversal in Freeport McMoran Copper & Gold?
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