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JimVanMeerten (62.35)

Freeport-McMoRan is baffling

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September 13, 2011 – Comments (0) | RELATED TICKERS: FCX

COMPLETE ARTICLE AND GRAPHS

Freemont-McMoRan (FCX) is on so many buy lists that its price action baffles me.  The fact that the stock is not living up to its expectations might be a signal that now is a good time to buy it. The stock is down over 32.53% from this years high vs the Value Line Index which is only off 21.49% from its 1 year high.  At an 8.6 P/E ratio it is priced at about 50% of the overall markets P/E ratio and almost the same discount from its own median P/E ratio.


Barchart technical indicators:

1 - If a company has value, technical sell signals could be signalling an opportunity to buy at a discount

2 - Barchart 100% technical sell signal

3 - Trend spotter sell signalBelow its 20, 50 and 100 day moving averages

4 - 32.53% off its 1 year high

5 - Relative Strength Index is 33.68% and getting lower

6 - Barchart computes a technical support level at 39.62

7 - Recently traded at 40.65 which is below its 50 day moving average of 49.00


Summary: There are several was to play Freeport-McMoRan (FCX): 1 - buy when it crosses above its trailing 20 day moving average, buy when you see cooper prices recover or buy now and weight.  Long term investors should see a good return for their efforts.


Jim Van Meerten is a Marketocracy Master

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