FCX how is this stock so low?
October 04, 2008
– Comments (4) |
RELATED TICKERS: FCX
, NUE
, PRGN
I understand the argument of a world recession, tho the slowdown really was brought on by 2 things in my opinion. First, the world really does revolve around the US, despite all the hullabaloo of BRIC. They sell to us plain and simple. We aren't buying and now they are declining. Second, all those foreign banks kept raising their interest rates to fight inflation. Well recessions tend to be the result (which is what Italy and Spain were crying about when German dominated ECB kept raisng rates).
But even still. I look at FCX and I see a company once selling for 127 now selling for 45. I see a company with a current PE of about 6 with a future PE of about 4. I see that company paying at over 3% on dividend.
Now I like to buy companies for the long haul, and so far the "buy and hold" strategy has not been kind to me. The only solace I have is in the dividends I get off my real life holdings. But I look at this company, and alot of others (like NUE) and shake my head. I understand hedge fund unwinding, but are we at a point that serious investors don't want to invest? If any company begs to be bought it has to be this, potential global slowdown notwithstanding. When do you want to buy it, when it hits 120? I always thought the premise behind investing was "buy low sell high." Well these companies are low, and maybe they might go a LITTLE lower, but to pass the opportunity to buy these companies up at these prices seems silly. So I bought some, and will add as it probably will drop to one dollar a share. Just like I did with NUE, and even PRGN (people really are missing the real value to that one - locked in long term charters, high yield, low debt - baltic dry index starting to rise a little too last couple days).
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