Tuesday, April 19, 2011

Trading Opportunity with Freeport-McMoRan Copper & Gold (FCX, $51.72)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)

Freeport-McMoRan Copper & Gold Inc. (FCX) is a copper, gold and molybdenum mining company in Indonesia, South America, North America and Africa.

Earnings per share are projected to rise 27.5% this fiscal year, the PE is 8.7, and the dividend is 1.93%. Despite these excellent "value stock" numbers, a mining stock is going to trade more in tune with metals markets, whereas a PepsiCo with the same valuation would be a good growth stock to own longer-term. Think of this as a trading opportunity, not a buy-and-hold stock.

The stock has been trading in the $49-$61 range, and if it continues this pattern, a buyer at the current price could sell at $58 and net 10% profit in the short-term.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. Seedisclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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