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Hotline Sample Report

This report is a sample for information purposes only. These recommendations are closed.
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9/9/2022 10:10:03 AM Eastern Time

Staying the Course
By Charles Payne, CEO & Principal Analyst

 Click here to download PDF version

It was a seesaw battle, but one that was very telling.  This was the first time in a while multiple buying efforts were thwarted, but buyers didn’t head for the exits.

China Inflation Eases

China inflation edged lower to 2.5% last month from 2.7%, but consensus was looking for it to edge higher to 2.8%.

It’s been a long time, but this news out of China has speculators trying to get in front of a possible better-than-expected CPI report next Tuesday.

Professional investors also thrilled retail sentiment continues to sink.  Don’t let them push you out of the greatest money-making machine ever – because they only want to buy what you will help make cheap.

 

It is time to put more money to work in my opinion.

The game plan is the same- we may have to be nimbler than the usual because of the near-term unknowns form exogenous factors with the Fed being at the top of the list.

Portfolio Approach

We are adding a new position to Materials in our Hotline Model Portfolio.

This Sunday ithe anniversary of 9-11…Never Forget.

Long Idea: Freeport-McMoRan, Inc. (FCX) @ $31.30
Industry: Materials; Metals & Mining
Click here to view the trading alerts that followed this recommendation

Trading Parameters
Status Closed
Entry Price$31.30
Entry Limitsee comments
Stop LossN/A
Target$38.00

BACKGROUND: Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico. As of December 31, 2021, it operated approximately 135 wells. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was incorporated in 1987 and is headquartered in Phoenix, Arizona.

SKINNY: Like the majority of commodities, copper has been crushed in the past last months sending FCX down for he year. Despite China being in lockdowns over the last few years, the country ran into shortages due to a drought reducing hydro power. Still, the company needs about 1 million tonnes of additional annual copper demand in order to reach a 2025 goal for 1,200 gigawatts of renewable energy capacity. For FCX, we are buyers are this level. The company has strong cash flows and profits, and it is poised to ride the future surging copper demand higher. Our target 38.


Key Fundamentals
PEG  0
Book Value  10.38
Institutional Holdings  79.95
Price/Sales  1.78
Average Daily Volume  20.32M
Shares Outstanding  1.43B
Market Value  45.33B
Insider Activity  19 Buys 2 Sales
52-week High  51.99
52-week Low  24.8
Annual Earnings Estimate  2.15

Analyst Coverage
 Exane BNP Paribas Upgrade  Outperform
 Citigroup Downgrade  Neutral
 Wolfe Research Downgrade  Peer Perform



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