Freeport-McMoRan (FCX)

[eddy2]

It’s true that production will be excellerated but this will put pressure on commodity prices to drop as they are a significant player in providing raw material. This could significantly change the profit to capital cost outlook putting more down ward presure on the stock. Not always does a production increase go to the bottom line as market dynamics change due to those changes. As a industry in whole production will be out stripping demand unless demand increases. Often a period of higher commodity pricing will bring on an abundance of production leaving the softening of demand relative too product development.

You have to remember forward looking guidance is based on to days commodity prices. Buyer has too beware of downward cycles along with production costs skyrocketing often associated with upward capital costs going forward.

I my self wouldn’t be a long term holder but a buyer and seller based on the above appointed considerations when they arise.