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3 Reasons to Sell Freeport McMoRan Today

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March 14, 2013 | Comments (2)

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!

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Austin Smith has no position in any stocks mentioned. Jim Mueller owns shares of Freeport-McMoRan Copper & Gold. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 14, 2013, at 6:00 PM, nongolfer wrote:

    I have to disagree with you on FCX. You also seem to contradict yourselves on this company. Get it together. You apparently know nothing regarding the oil & gas business and the play that MMR is working or the fact that PXP is a profitable company with an excellent track record.

  • Report this Comment On March 31, 2013, at 11:59 PM, tcsonic wrote:

    Let's just say this article is very short term focused. Copper prices will increase in the future, barring a new technology that replaces copper's many uses. As far as the oil investment; mining uses LOTS of energy, and I can't think of a better way to hedge higher energy prices than to produce the commodity that create's the bulk of the energy you consume. Oil is not new to FCX, they have only been out of the business for a short time. On top of this the dividend is nearly 4%, and only amounts to a 37% pay out ratio.

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