Steve McDonald: Several years ago when no one could talk about anything but metals – gold and miners in particular – and their prices were through the roof, I made a wish list of miners and set what I thought at that time was a ridiculous target buy price of 50% off.
Well, as will always happen in the stock market if you wait long enough, my price alarm went off last week for one of my favorites, Freeport-McMoRan Copper & Gold Inc.(NYSE:FCX).
As with all miners, FCX has been slammed by worldwide slowing demand for metals, and is down from highs of around $65 a share to $32 and change. But when copper finally stabilizes and demand improves – which it has to do – FCX will break out way above its current price.
This is a company that is the dominant player in copper worldwide and has been doing everything right during the downturn in both the gold and copper markets.
FCX has begun to diversify away from copper, which has