Freeport-McMoRan (FCX)

[eddy2]

I haven’t read that. FXC has nothing to do with FCX far as I know anyhow. It wouldn’t surprise me if one of the institutions did. This takes me too the lingering question of the building up of the Treasury Stock ie: tax’s owed and the question of the share holders equity building as well.

It could be the company is shorting it’s own stock through an out side entity interest like FXC. Let me explain how this is done. FCX will trade share equity with FXC and go long while FXC goes short. If one of the plays is in the money and the other one is out of the money there is a neutral gain except for the tax’s owed in conjunction too the cost of setting up the play that puts one of the interest out of the money.

Capital cost can often be passed on too shareholders by structuring the play in this manner.

FXC will then lend money too FCX on a good will bases moving the capital cost of the debt back onto the debtors shoulders.

This will move the liability well above the assets value while at the same time the company will forward split the shares selling the debt backed by the new collateral in the outstanding share owner ship of the lender ie: convertible share dilution.

Follow the money, talk to your account better yet take a course in accounting 101 too better understand what your purchasing and who holds the collateral to the borrowed debt.

So often early investors will sell them selfs short to the company diluting there interest too new arrivals coming into the game at much higher prices when taking in the cost of the collateral.