There are a couple things going on in this stock that lead me to believe it's a good short-term play.
First of all, there have been reports that there has been significant forced liquidations by firms with large positions in FCX over the course of the past week. The stock has traded as if that is exactly what's going on; It began 9/11/08 down over $6.00 while other commodity plays were performing much better.
Secondly, there have been repeated takeover rumors during the course of the past month. And those rumors were happening when the stock was trading over $110 a share. If those prove to have any truth or even if there is another rumor, this stock should shoot up by more than 15% in a day.
Thirdly (and perhaps most importantly!), FCX is a large, well-run company that mines and specializes in copper and gold production. Despite recent trends, commodities are historically the best investment in times of severe uncertainty. The 'flight to safety' that caused the commodity boom of the past year should soon boost the value of FCX above its current level.
$68.26 (09/11/08)
