Liberty Star Uranium and Metals Corp (LBSR)

[mstoneinv]

Copper hits a new low $2!!

But don't worry boys and girls, a legendary investor like Carl Icahn just invested big time in in FreePort (FCX), one of the worlds largest copper producers. He must know something.

But surprise, surprise. What he knows is that Freeport should get rid of it's high cost North American copper mining operations such as the ones in Arizona, if they are to turnaround and get their share price up. That is right boys and girls, one of the savviest big money investors thinks investing in mining in Arizona is a BAD IDEA!

Icahn buys 88 million shares in FCX.

In the filing, Icahn said that he believes the shares are currently undervalued and that he intends to have discussions with the board and executives of the company relating to its capital expenditures, executive compensation packages and capital structure. He also wants the company to rein in its high-cost production operations.

So after instituting this new plan, the question still remains: How can Icahn change Freeport-McMoRan and create more value for shareholders?

He is not necessarily looking for a dividend payout, but it can be surmised that he almost certainly wants the company to get rid of the oil and gas albatross it acquired. Another very likely scenario would be the shedding of its expensive North American copper mines.