3 Reasons to Sell Freeport McMoRan Today

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!

Read/Post Comments (2) | Recommend This Article (2)

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  • Report this Comment On March 14, 2013, at 6:00 PM, oilpatch71 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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9/29/2016 2:39 PM
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Freeport-McMoRan C… CAPS Rating: ****