Investing in a mining company carries risk. In this video, Jim Mueller explains three reasons for selling Freeport-McMoRan. Freeport operates a large copper and gold mine in Indonesia and, if government sentiment toward foreign ownership of natural resources changes, Freeport could be in trouble. The European economy could affect copper demand and, lastly, Freeport's foray into the oil and gas business may not pan out.
After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan will have plenty on its plate as it tries to adapt to the new industry, because expanding into oil and gas carries plenty of inherent volatility. FCX had a profitable copper business, and on top of this foray into a new industry, it still has to contend with mining industry bellwether BHP Billiton. To help investors determine if Freeport-McMoRan is a buy or a sell, we've compiled a brand new premium report on the company! Click here now to gain instant access!