Freeport-McMoRan (FCX)

[eddy2]

This is crazy what you guys are coming up with. They sold of a huge part of there portfolio that created both a tax debt and credit from the loss of the investment. The money spent on the oil and gas play minus what they got for it created a shareholders deficit. The sales and service tax offsets each other. Service tax being tax’s paid well developing the oil and gas interest and sales tax owed by the purchaser to the company that is obliged in trust to pass it on to institutional that has a regional and federal interest.

So the paid in tax or capital is subtracted by the sales tax or customer/ purchaser of the gas and oil interest. So take the treasury stock ie: paid in capital to the treasury and minus the share holders deficit ie: tax owed on the sale of the above said assets.

If the treasury figure is larger then the share holders deficit then a tax credit is owed to share holders for there loss on the investment. Because tax’s run about fifty fifty to revenue when all combined you can say that the loss is equivalent to the tax credit. In other words if the investment loss is a $1 a share the investor has only lost in reality $.50 until he or she sells his or her interest. The later is relative again to when the shares where purchased and sold if the stake holder has a tax credit or has a tax debt to pay.

The other consideration is does the company have a tax debt for the treasury stock ie: tax paid in to the government institution in question. This liability often is shown under payables within a years period of time. Payables are none collateral debt so there is no receivables ie: collateral attached to the debt.

Now payables can also be consumables as well but you have to remember that there is then a tax credit attached to those payable consumables and you have too remove and separate the two debts.

I hope this clarifies some of the outlandish assumptions many are speculating into the numbers. This company is trading way to high based on past performances not saying that when a mistake is made that history will prevent another from accuring in the future. Always best to stay to what you know best granted I believe this time they had piggy backed of the believed ability of others.