This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

DuPont, Freeport McMoRan Bode Well for Earnings

Stocks in this article: FCX DD BHP

FCX reported net income for fourth-quarter 2012 totaling $743 million, 78 cents a share, compared with net income of $640 million, or 67 cents per share, for fourth-quarter 2011. Annual net income for 2012 was $3.0 billion or $3.19 per share, compared with $4.6 billion or $4.78 per share for the year 2011.

That looks like a big miss to me, but three hours after the announcement shares of FCX were trading almost 4% higher. Go figure!

Look, I already sounded off big-time about FCX last month and its all-of-a-sudden plan to reinvent itself into both an energy company and a precious metals producer. Maybe it's been taking its "plays" from the playbook of Australian conglomerate BHP Billiton (BHP)?

In its 10 a.m. EST conference call FCX gave positive guidance on its copper and gold production businesses. You can read a summary at Freeport-McMoRan's Web site. It's still the largest, publicly traded copper producer in the world, but I wouldn't touch FCX with a 10-foot anaconda at this point; when you look at its five-year chart (notice 2012 especially) I think you'll understand why!

 Chart data by YCharts

FCX's price and trailing-12-month EBITDA look like a poorly made airplane heading for a crash-landing. Maybe all the bad news is baked into this controversial company, and thus today's positive price reaction. Yet with FCX's debt load, its reputation for overpaying for assets it spun off in the past, and the stock's jaded history, it's difficult for me to be optimistic about its immediate future.

Tuesday's upbeat market response to DD's and FCX's announcements bodes well for the remainder of January. The tone for the rest of the week is also positive and Tuesday's corporate news is being viewed favorably. My crystal ball is calling for a mostly up week with low volatility. Time will tell.

At the time of publication the author held no positions in any of the stocks mentioned.

Jim Cramer's Protégé, Dave Peltier, finds you Stocks Under $10 picks with explosive upside potential. See what he's trading today with a 14-day FREE pass.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs