Shares of Freeport-McMoRan (FCX) flew higher after famed activist investor Carl Icahn took a major stake in the struggling mining company.
Freeport McMoRan (FCX +1.1%) sports a solid gain as Barclays analyst David Gagliano suggests the company should covert to an MLP, an idea discussed at length recently with CEO Jim Flores."With producing oil assets backed by hedges, with longer-term U.S.-based copper projects in need of creative financing, and with the stated objective of reducing debt to a targeted level of ~$12B over the next three years, the case for an MLP with sizeable future drop-down potential from FCX is compelling," Gagliano writes.FCX is the firm's top pick among U.S. metals and mining, citing "significantly underappreciated company-specific volume growth potential in both copper and energy." Post your comment!
On average, companies with short, simple names attract more shareholders, generate greater amounts of stock trading, and perform better on certain financial measures than companies with hard-to-process names such as National Oilwell Varco and Freeport-McMoRan Copper & Gold, say T. Clifton Green of Emory University and Russell E. Jame of the University of Kentucky. A 1-step increase in name “fluency” on a 5-step scale, such as reducing name length by 1 word, is associated with a 2.53% increase in market-to-book ratio, which would translate to $3.75 million in added market value for the median-size firm in the authors’ sample. Selecting an easy-to-process company name is a low-cost method for improving investor recognition and increasing firm value, the authors say.
On average, companies with short, simple names attract more shareholders, generate greater amounts of stock trading, and perform better on certain financial measures than companies with hard-to-process names such as National Oilwell Varco and Freeport-McMoRan Copper & Gold, say T. Clifton Green of Emory University and Russell E. Jame of the University of Kentucky. A 1-step increase in name "fluency" on a 5-step scale, such as reducing name length by 1 word, is associated with a 2.53% increase in market-to-book ratio, which would translate to $3.75 million in added market value for the median-size firm in the authors' sample. Selecting an easy-to-process company name is a low-cost method for improving investor recognition and increasing firm value, the authors say.
According to Reuters, Freeport Mc-Moran Copper & Gold Inc. has lifted the force majeure that it declared in Jun 2013 on shipments from PT Freeport Indonesia's Grasberg mine in Papua.
The Indonesian unit of Freeport-McMoRan (FCX +3.1%) has lifted its force majeure at the Grasberg mine, the world's second-biggest copper mine, almost four months after a deadly accident forced a halt in operations, the local CEO says.Copper prices are rallying today, up 2.2%, fueled by a trifecta of stronger manufacturing data from China, Europe and the U.S.Copper prices have been trending upward since June, but Paul Ausick notes production is estimated to be 167K metric tons above demand this year and rising to 408K metric tons of excess production next year, which makes virtually certain a drop in price with the only question the size of the drop. Post your comment!
Freeport-McMoRan Copper & Gold (FCX) declares $0.3125/share quarterly dividend. Forward yield 3.75%. For shareholders of record Apr. 15. Payable May 01. Ex-div date Apr. 11. (PR)
declares $0.3125/share quarterly dividend. Forward yield 3.75%. For shareholders of record Apr. 15. Payable May 01. Ex-div date Apr. 11. (PR) Post your comment!
One of the most interesting debates I've heard lately about this market is whether or not the increase in M&A activity is bullish. The bearish Doug Kass says it's not and the ever-eBULLient Jim Cramer says it is. I'm not sure who is right. But I'll tell you what is right: putting money on the focused, experienced deal-makers at Evercore Partners (EVR). This "boutique" investment bank—I've always loved that phrase, like it's a shop on Fifth Avenue for the 1% (which it is I guess)—was founded in 1996 by current Chairman Roger Altman, a veteran of Wall Street and Washington. Altman served as deputy secretary of the U.S. Treasury in the late 1970s and again in the '90s and was head of M&A for Blackstone Group (BX) before launching his own firm on the premise that clients would be best served by an investment banking firm free of the conflicts of interest inherent to large, multi-product financial institutions. Kill the Traders and Other Distractions Altman believed that this pure advisory model, not distracted by proprietary trading and sell-side research, would serve clients the best and attract the most talented senior finance professionals to the firm. This is important because while M&A deals seem like quick cash grabs on the surface where big money simply has to make a deal that makes both sides richer, there is a lot more to Evercore's business, including advising on divestitures, restructurings, specialized financings, public offerings, private placements and other strategic transactions. Special Offer: We asked some of the most successful investors in the country to name their #1 pick for 2013. Get details on their top 10 stocks in this free report, Forbes Top Stocks for 2013…10 to Buy Now. Though global M&A activity rebounded fairly strong in 2010 and 2011 after the financial crisis, Evercore was a slow starter. You can see from the Price & Consensus chart below that earnings estimates would start out rosy for each year 2010 through 2012, only to be taken down. And, of course, the stock price followed. But in late 2012, you can also see that story quickly began to change. Analyst consensus estimates made a dramatic turnaround on the heels of one of the company's biggest deals ever, advising Kraft Foods on its $36 billion spin-off of Kraft Foods Group. And as corporate deal-making heated up in into the end of 2012, with average Wall Street deal premiums crossing 25%, profit projections for EVR got hotter too. In early December, they signed on to advise McMoRan Exploration in its interest to be acquired by Freeport-McMoRan Copper & Gold (FCX) for $3.2 billion. Evercore has now facilitated more than $1 trillion in transactions, including advising a special committee of Dell's board of directors in the recent bid to take the company private. And one thing to remember about Evercore is that even if a deal doesn't close, they still get paid advisory fees for their work. The firm also has a growing Investment Management Services division with over $12 billion AUM in private equity, venture capital, and trustee services for institutional investors and high net worth individuals. We could talk about Evercore's rising revenues, its balance sheet, or why the Zacks quantitative model picked up its dramatically improving earnings outlook. But, sometimes it's best to just let a picture tell the story. Below is a 1-year price chart with notations about when the model turned from red to green. Investors who spotted the "green lights" in December jumped on this story early for 50% gains. Even its earning of a #1 Rank on January 12 gave time for substantial appreciation. And while the momentum may slow soon, it looks like dips to the 50-day and that area of congestion between $38 and $40 should be bought as long as the Rank is at least a 3. I mentioned the leadership of Altman in creating a world class firm to take on the bulge bracket. But the firm's CEO is equally impressive. Last week I watched an interview with CEO Ralph Schlosstein on Bloomberg and he comes across as not only a thoughtful economist, but a world class negotiator. Schlosstein, who also worked at the Treasury along side Altman in the '70s, was for almost twenty years the president of BlackRock (BLK), the largest publicly traded asset management firm with over $3.6 trillion of assets under management. He co-founded BlackRock in 1988. No stranger to politics, in the interview he carefully dissected the battle lines in Washington over fiscal issues and I could tell I was watching a master of solving problems and communicating solutions, skills which must be required at the top of multi-billion dollar deals with diverse shareholder interests. Schlosstein also shared his steady view of the M&A horizon. First, he described the 3 major conditions in place for a continued M&A revival: supportive capital markets, economic visibility and CEO confidence. Then he described Evercore's tracking of 33 years of M&A data, calling it a secular growth story that continues to make higher highs and higher lows in deal volume throughout economic cycles. He noted that the average down cycle is 2 to 3 years, and the average up cycle is 5 to 8 years. Since we are in year 4 of an up cycle, Evercore should be on your buy list of deal masters. Kevin Cook is a senior stock strategist with Zacks.com
As gold continues to test the lower bounds of its 18-month support line above $1,500, the miners keep sliding down the shaft even faster. Copper king Freeport-McMoRan Copper & Gold (FCX) is hardly immune, just because it is the world's lowest-cost producer. That's because the industrial metal with a Ph.D. in economics isn't exactly predicting gangbuster global growth with its consolidation around $3.50 per pound. Freeport-McMoRan is engaged in mineral exploration and development, mining and milling of copper, gold, and silver in Indonesia, North America, and the smelting and refining of copper concentrates in Spain and Indonesia. It is one of the world's largest producers of gold and copper. The chart below shows a 3-year performance of FCX vs. a basket of its peers, the Market Vectors Gold Miners ETF (GDX). Worth noting is that FCX has been a Zacks #4 Rank (Sell) or #5 Rank (Strong Sell) since October of 2011. Hopefully this served as a warning sign to bottom-fishers in the miner. How to Boost Demand: Close Mines Fourth-quarter 2012 adjusted earnings matched the Zacks Consensus Estimate while profit rose year over year on higher production. Revenues climbed on higher copper and gold sales, but missed the Zacks Consensus Estimate. Freeport is conducting explorations close to its existing mines with a goal to boost reserves, which will facilitate the development of additional future production capacity across the large minerals districts where it operates. How to Remove Heavy Metals: Buy Oil In December 2012, FCX inked definitive merger pacts, under which, it will buy Plains Exploration & Production Company (PXP) and McMoRan Exploration (MMR) for roughly $9 billion. Freeport said that it will pay $6.9 billion in cash to acquire Texas-based independent oil and gas company, Plains and it will takeover Louisiana-based exploration and production company McMoRan for roughly $2.1 billion in cash (excluding 36% interest currently owned by Freeport and Plains). The total transaction value is roughly $20 billion taking into account the debt to be assumed by Freeport as part of the deal. This move into the energy space was not well-received by investors with the stock dropping hard from $38 to $31. And while it appears the stock finds some substantial buying interest in the $30-31 area--support in 2011 and 2012 corrections and bouncing from there in December and this month--the analysts are obviously still under-whelmed with the company's prospects and new debt-heavy energy investments. Special Offer: This special report zeroes in on some huge money-making opportunities as well as some urgent sell alerts that could save you from devastating losses in the year ahead. Get nearly 100 buy and sell calls from almost four dozen of the world's most successful investing experts all in one place in Forbes' Best Ideas for 2013. While the move to diversify into energy seems smart on the surface--and clearly still commodity-focused--analysts are going to take their time digging for solid answers to what the company's future earnings will look like. Estimates from the company itself are that the energy division could become 26% of EBITDA this year. As one example of the likely difficulty of metals and mining analysts to figure in the energy acquisitions, the Australian investment bank Macquarie recently lowered estimates for FCX substantially based on declining gold and copper price forecasts. They are now at $4.05 for this year vs. the Zacks consensus of $4.42, but they left their 12-month price target unchanged at $41. They also acknowledged that they hadn't modeled for PXP and MMR yet. The stock is cheap, trading under 8X, but until the earnings outlook changes, look for FCX to continue to track the spot prices of gold and copper. And if gold finally takes a dive below $1,500, expect FCX to do the same. Kevin Cook is a senior stock strategist with Zacks.com.
Goldman Sachs upgrades Freeport McMoran (FCX) to a Buy rating and raises its price target to $42. The firm stands more positive on copper and sees the M&A overhang on Freeport diminishing. FCX +1.1% premarket.
Goldman Sachs upgrades Freeport McMoran (FCX) to a Buy rating and raises its price target to $42. The firm stands more positive on copper and sees the M&A overhang on Freeport diminishing. FCX +1.1% premarket. Post your comment!
ByCory Renauer:For weeks now, I have been trying to ignore the mining stocks that pop up in my "safety and value" screen. I'm just not a metals guy. My interest in commodities begins and ends with energy. But the numbers are just too good to ignore. I'm going to stick with analysis based purely on fundamentals. Note to metals traders: I'm pretty thick skinned, so feel free to criticize.Phoenix, Arizona based Freeport-McMoRan Copper & Gold (FCX) and its subsidiaries comprise world's largest producers of gold, copper and molybdenum in the world. Newmont Mining Corporation (NEM) is primarily a gold producer with headquarters in Denver, Colorado. Vale SA (VALE) is a Brazil-based metals and mining company that operates in over 38 countries. All data below sourced from company SEC filings, earnings call transcripts, and YCharts. Returning value to shareholders Dividend yield Dividend growth over past 10 years Book value Complete Story »
Freeport McMoRan ([[FCX]] +0.5%) says it is more than willing to supply any new copper smelters in Indonesia with raw copper concentrates but remains reluctant to build smelting operations itself. The Indonesian government is renegotiating royalty contracts with foreign investors including FCX as it tries to push firms to add more value within the country.
Freeport McMoRan (FCX +0.5%) says it is more than willing to supply any new copper smelters in Indonesia with raw copper concentrates but remains reluctant to build smelting operations itself. The Indonesian government is renegotiating royalty contracts with foreign investors including FCX as it tries to push firms to add more value within the country. Post your comment!
Freeport McMoRan ([[FCX]] +3.3%) says it may double sales of copper concentrate to China in the next three years to as much as 1M metric tons/year as mined production expands. China is expected to boost concentrate imports by 17% this year, soaking up some of the global growth in mine supply.
Freeport McMoRan (FCX +3.3%) says it may double sales of copper concentrate to China in the next three years to as much as 1M metric tons/year as mined production expands. China is expected to boost concentrate imports by 17% this year, soaking up some of the global growth in mine supply. 1 comment!
Freeport-McMoRan Copper & Gold (FCX) today launched a M&A-driven $6.5 billion offering across four tranches of 144A/Reg S notes to back two large acquisitions, setting the largest offering since AbbVie placed $14.7 billion in early November to back its spin-off from Abbott Laboratories. Spreads were set at T+162.5 for $1.5 billion of five-year notes; at T+187.5 for $1 billion of seven-year notes; at T+200 for $2 billion of 10-year notes; and at T+237.5 for $2 billion of 30-year bonds, all representing the narrow end of guidance ranges, sources said.
Freeport-McMoran Copper & Gold ([[FCX]] -1.3%) says it will issue senior notes in order to fund new deals in the energy sector. The debt raise will be from a private placement.
Freeport-McMoran Copper & Gold (FCX -1.3%) says it will issue senior notes in order to fund new deals in the energy sector. The debt raise will be from a private placement. 3 comments!
By BubbleBustInvesting:Gold was in another correction mode on Wednesday -- the sixth in less than a year -- dropping briefly below $1590; a big disappointment to the bulls, betting that the world will come to an end by early this year. Silver dipped below $29. (Click to enlarge) (Click to enlarge) Gold ETFs like SPDR Gold Shares (GLD) were also sharply lower (down 1.86 percent); silver ETFs like iShares Silver Trust (SLV) followed through in sympathy (down 2.12 percent), and Freeport McMoRan Copper and Gold (FCX) was down 2.57 percent. Other metals like Palladium (PAL) were down more than 5 percent. What's going on? Is the precious metals bubble bursting? It is hard to say for sure. What we can say, however, is that the technicals do not look terribly good for the bulls. And many of the factors that blew air to the bubble are no long on investor Complete Story »
Copper investors are spooked after China authorities took steps to ease inflationary pressures, tightening liquidity by reversing policy on repos and draining $4.8B from the system. The move has affected shares of Freeport McMoRan ([[FCX]] -2.3%) and Southern Copper ([[SCCO]] -2.3%); China equities ([[FXI]] -2.1%) also are under pressure.
Copper investors are spooked after China authorities took steps to ease inflationary pressures, tightening liquidity by reversing policy on repos and draining $4.8B from the system. The move has affected shares of Freeport McMoRan (FCX -2.3%) and Southern Copper (SCCO -2.3%); China equities (FXI -2.1%) also are under pressure. Post your comment!
Freeport McMoRan Copper, the world’s largest publicly traded copper company, released its Q4 results last Tuesday, January 22. While the quarterly revenues and net income grew year-over-year, annual revenues and net income declined.
Freeport-McMoRan Copper & Gold Class B Earnings Call Nuggets: 2015 Copper Production and Presidential Election Timing
What investors need to know...
Фондовые индексы США по итогам дня умеренно прибавили (S&P 500 +0,44%, 1492 пункта). Обновлению максимумов способствовала сильная отчетность от Travelers, Freeport-McMoRan Copper & Gold, DuPont. Азия сегодня торгуется разнонаправлено. Хуже большинства чувствует себя японский фондовый рынок. Спекулянты отыгрывают вчерашнее решение Центробанка Японии отложить новую порцию стимулирующих мер до следующего года. Фьючерс на S&P 500 колеблется около 1485-1490 пунктов, обновив максимумы с 2008 года. Попытки поставить вершину ждем от 1490-1500, либо от 1520-1530 пунктов. Цели возможной коррекции видим на отметках в 1440-1450, 1420, 1400 пунктов. Фьючерс на нефть сорта Brent торгуется утром в районе $112-112,5, отрабатывая верхнюю границу текущего диапазона $107-112. Для продолжения роста необходимо закрепиться выше $113. Следующим ориентиром в этом варианте выступит район $120. Внешний фон нейтрален.