Friday, August 14, 2009
Freeport McMoran (FCX) & Copper; Expect a Pullback
One of my July "Itz Stock Pix" Freeport McMoran (FCX) is up +46% in 5 weeks as copper prices continue to climb. I've been pointing out that caution us warranted, valuations on FCX are extended here, trading at 17xs S&P earnings estimates of $3.85 for '10. That said continued decline in the dollar could drive copper prices higher. I expect a pullback in the stock near term, but longer term to climb further.
VIDEO: Carter Worth on CNBC discusses FCX ~link~
*click on chart to expand image