Freeport-McMoRan (FCX)

[eddy2]

How do you figure that Sly? The public holds at most ten percent of the four billion of the 41% Jakarta is saying its worth. Now of that 10% only 2% is traded. The equity represents all of the issued shares not just the shares that are traded.

So 2% of 1.5 billion is about three hundred million dollars. That is what the market cap should be not 1.5 billion dollars the equity value given.

A fool and his money soon parted as it has been said. Do the math again Sly applying the average interest rates of 6% not today’s -1%.

The credit is not sustainable. Interest rates go the credit will be cut and they will be forced into converting debt for a much less value.

Sly as we have discussed before if a stock is trading above it’s stated equity value or par value + or - it’s equity value being a positive is negative and a negative being a positive then the stock is overvalued when applying the average stated interest rates over a twenty five year period.

We did adjust that from the forty year after they lowered the amortization on debt. The argument is now out on wether to lower interest rates mean average if debt can be turned over before the goverment mandated renewed time period.