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Take Profits on FreePort-McMoran Stocks?



๐Ÿฅ‰Now that Copper prices $COPPER are at all time high and our initial investments in FreePort-McMoran $FCX are over 360%, should we take profits? FreePort-McMoran is not only the best performing stock in our portfolio in the last year (ignoring GameStop $GME ), ๐™ž๐™ฉ ๐™ž๐™จ ๐™–๐™ก๐™จ๐™ค ๐™ค๐™ฃ๐™š ๐™ค๐™› ๐™ฉ๐™๐™š ๐™—๐™š๐™จ๐™ฉ ๐™ฅ๐™š๐™ง๐™›๐™ค๐™ง๐™ข๐™ž๐™ฃ๐™œ ๐™ค๐™› ๐™ฉ๐™๐™š ๐™Ž&๐™‹ ๐Ÿฑ๐Ÿฌ๐Ÿฌ $SPX500 gaining over 600%. Since everybody is greedy now, should we be fearful?


๐Ÿฅ‰Copper is the second-best electrical conductor after Silver and is widely used in construction and electrification. The demand for Copper in recent years has been increasing because of construction in China, and renewable energies, and Electrical vehicles. Normally, ๐™–๐™ฃ ๐™€๐™‘ ๐™ช๐™จ๐™š๐™จ ๐Ÿฐ ๐™ฉ๐™ž๐™ข๐™š๐™จ ๐™ข๐™ค๐™ง๐™š ๐™˜๐™ค๐™ฅ๐™ฅ๐™š๐™ง ๐™ฉ๐™๐™–๐™ฃ ๐™–๐™ฃ ๐™„๐˜พ๐™€ ๐™ซ๐™š๐™๐™ž๐™˜๐™ก๐™š. The economic recovery and higher inflation can also be a boon for copper.


๐Ÿ“ˆ However, the supply is not here to meet the demand and we are going into a ๐˜พ๐™ค๐™ฅ๐™ฅ๐™š๐™ง ๐™Ž๐™ช๐™ฅ๐™ฅ๐™ก๐™ฎ ๐™‚๐™–๐™ฅ. When Copper prices peaked in 2011, the inventories were 200 000 metric tons. Today, we only have 130 000 metric tons in inventories.


โ›๏ธThe reason why I chose FreePort-McMoran over other copper miners is because of its high production cost and I was very confident that we will have a copper supply gap that it made sense to invest in a ๐™๐™ž๐™œ๐™-๐™˜๐™ค๐™จ๐™ฉ ๐™ฅ๐™ง๐™ค๐™™๐™ช๐™˜๐™š๐™ง ๐™ฌ๐™๐™ž๐™˜๐™ ๐™ž๐™จ ๐™ซ๐™š๐™ง๐™ฎ ๐™จ๐™š๐™ฃ๐™จ๐™ž๐™ฉ๐™ž๐™ซ๐™š ๐™ฉ๐™ค ๐™˜๐™ค๐™ฅ๐™ฅ๐™š๐™ง ๐™ฅ๐™ง๐™ž๐™˜๐™š๐™จ. However, during a copper bear market, it can be risky to hold FreePort-McMoran.


๐Ÿ’ธ ๐™๐™ช๐™ฃ๐™™๐™–๐™ข๐™š๐™ฃ๐™ฉ๐™–๐™ก๐™จ ๐™ค๐™› ๐™๐™ง๐™š๐™š๐™‹๐™ค๐™ง๐™ฉ-๐™ˆ๐™˜๐™ˆ๐™ค๐™ง๐™–๐™ฃ have improved and they have restarted paying a dividend and considering share buybacks. FreePort-McMoran also produces Gold $GOLD but Copper affects the price more.


๐Ÿ’ฐIn a very conservative analysis, I'll say that it is above its intrinsic value but can still go up because the copper ๐™—๐™ช๐™ก๐™ก ๐™ข๐™–๐™ง๐™ ๐™š๐™ฉ ๐™๐™–๐™จ ๐™ง๐™š๐™–๐™ก๐™ก๐™ฎ ๐™Ÿ๐™ช๐™จ๐™ฉ ๐™จ๐™ฉ๐™–๐™ง๐™ฉ๐™š๐™™. Of course, copper prices are volatile and in the short term, anything can happen. But over the long term, I'm still bullish on copper and FreePort-McMoran.


Watch the full video on YouTube:

https://www.youtube.com/watch?v=KY4YvpmrVCg&list=UUPO3uUyoXSaFWG-Ldq1mqEQ&index=1


Hereโ€™s the full analysis of FreePort-McMoran:

https://ishfaaqpeerally.teachable.com/courses/662813/lectures/32013337



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