FCX had a nice move higher recently and may be in the process of retracing that advance. Take a look at the three-month chart below, which also gives us a view of the simple 50-day moving average.
The 50-day moving average price as of July 6 is just above $34. The most recent low was $31.41 on June 26.
A 50% price retracement from the July 5 intraday high of $36 from the June 26 low would bring the price of FCX down to $33.71, which would be a reasonable entry target price.With the current (and recently raised) annual dividend of $1.25, that would bring the yield-to-price up to 3.7% if we could buy FCX at $33.71. After all, it's the world's largest copper producer and it produces more than 20% of its earnings from its gold production. Both copper and gold will feel the effect of global monetary easing and economic stimulation programs. With $4 billion of levered free cash flow (trailing 12 months) and a payout ratio of just 37%, the dividend at FCX is well covered. The fact that the stock is selling at a current P/E ratio below 9 and a forward P/E ratio below 7 reminds us that it's trading at the low end of its 52-week range. Goldcorp (GG), which
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