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Capshot's rating system misfired badly with FCX-the stock price has been halved in the past few weeks. Will it recover? My sense is that the demand for copper will slow with the rolling economic collapse we are experiencing. On the other hand, the US government has taken on trillions of dollars of extra debt in the various bailout schemes being hatched in Washington. This argues for a downward revaluation of the currency, so that the debt could be paid off with cheaper dollars. The inflation would result in higher gold prices--maybe much higher.

FCX is "Copper and Gold". To a certain extent, management can choose to dig the more valuable stuff out of the ground, and leave the less valuable stuff. But the copper price hit has been very tough on FCX. They just spent billions on a copper company. Gold has both industrial and jewelry uses; but industrial demand, and discretionary income, are both declining.

FCX stock was looking pretty at $20/share, what with the $2 dividend. But now that it is suspended, FCX stock's appeal is greatly diminished. It is essentially a future. Taking into account the overall economic and political environment, I think that FCX will languish in the low teens for a while, possibly reacting positively to a dramatic rise in gold prices, should that occur.
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