Morgan Stanley downgraded FCX to an underweight today, finally coming to grips with the inexorable fact that copper is heading lower, thanks in large part to China being a giant powder keg readying to blow.
In their report, they note the horrific nature of their balance sheet and conclude copper prices simply aren’t high enough to justify buying the stock.
Truth be told, this analysis could’ve been made by a 10 yr old. Freeport is divesting assets at distressed prices in order to deleverage their balance sheet. Subsequently, they’re giving up any potential earnings upside, in the event of an upswing. In the immediate term, the price of copper has been going absolutely nowhere. As such, there’s little reason to own the shares.
Morgan cut their target to $7 from $9.
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Well there’s your signal to go long. Not as good as a “God’s work” signal from a GOldman sux downgrade but I might just buy a little.
A long trade is looking better by the day. I do like the 8.5 region as a long entry: volume hole and just under the 200 d sma. It would be nice to see some sort of capitulation candle as in a long wick hammer type
$FCX is fucked. Read about the copper find $IVN.TO has and bear whitness to the worlds largest, lowest cost copper mine coming online in 2018.
New DNC leak : https://mobile.twitter.com/wikileaks/status/775812373269454848
DNC was receiving and trading on earning statements before they were released to the public. You should also check out their portfolio. Interesting.
The creation of 401K plans to get almost guaranteed investment has made the stocked market a great boon to “public” service and corporate fat cats