Freeport-McMoRan (FCX)

[eddy2]

End of the tax year and there short. The only way out is to borrow more and cancel the tax debt. It would spin the stock upward. The other issue is the plant had issues of a repair so the capital used for the repair will again off set the tax debt.

There is good tax debt and bad tax debt. The bad credit is depreciation tax credit that can be passed on to the customer if the company is a leader in there pricing model or is the only cat offering the service. This is until someone can do it cheaper as referenced in the trust I spoke about yeasterday.

Bad tax debt is associated with labor costs yet it’s pretty much tied to the above mention. You can take all of the share holder deficit and split it pretty much down the center applying fifty percent to labor and the other half to consumables.

The share holders deficit is basically a unrecoverable expense that only twenty percent can be recovered too the detriment of the public interest and the rest of the cost or dilution being the common share holders hit.

Commons take more risk so both the up and down side is greater then what the public will endure.