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!

Citi Analyst Backs "Sell" For Freeport-McMoRan

NEW YORK (AP) â¿¿ A Citi analyst on Monday added Freeport-McMoran Copper & Gold Inc. to the investment bank's list of top stocks to sell, saying that he expects copper prices to continue to slide over the next several months.

THE BACKGROUND: The Phoenix-based mining company's shares have tumbled 48 percent over the past two years, hurt by fluctuations in commodity prices and an investor backlash against its acquisitions of Plains Exploration & Production Co. and McMoRan Exploration Co.

Freeport-McMoran paid about $6.2 billion for oil and gas producer Plains and $2.2 billion for the shares of energy producer McMoRan that it did not already hold.

The acquisitions were controversial when they were announced in December, with discontent among some investors who thought they were too expensive for the copper and gold miner.

THE OPINION: Citi's Brian Yu, who added Freeport-McMoRan to Citi's "Top Picks Live!" list with a "Sell" rating, said he expects copper prices to continue to slide over the next several months, as production increases and demand slows.

He noted that mines in Mongolia will begin shipping copper soon, while Freeport-McMoran's mine in Indonesia recently received government approval to restart production after being shut down following a collapse that killed 28 workers. At the same time, demand for copper in China is slowing, he said.

Yu also noted that the company's debt levels rose significantly with the closing of the Plains and McMoRan Exploration acquisitions and it will be tough for the company to reduce that debt without cutting capital spending.

THE SHARES: Up 4 cents to $28.09 in midday trading. The stock has changed hands between $26.37 and $43.65 in the past 52 weeks.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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