70% of S&P 500 companies to report this season have surpassed earnings estimates, including 100% of the DJIA stocks that have reported thus far. This is what I mean by upside.
I don't contend that copper, gold, and molybdenum prices aren't core drivers of equity prices and book value. But copper is down 62% from its peak, while FCX shares are down over 80% from peak. Moly and gold pricing have obviously held up much better.
I always subtract goodwill from my calculations. There's only about $6b of it, and if you yank it out of the picture FCX is still just .5 book. It's all about risk and reward, and I think the balance is tiled towards investors' favor at current prices.
Weekly Preview: Earnings Upside Continues [View article]
Best of luck in your investing efforts.
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I don't contend that copper, gold, and molybdenum prices aren't core drivers of equity prices and book value. But copper is down 62% from its peak, while FCX shares are down over 80% from peak. Moly and gold pricing have obviously held up much better.
I always subtract goodwill from my calculations. There's only about $6b of it, and if you yank it out of the picture FCX is still just .5 book. It's all about risk and reward, and I think the balance is tiled towards investors' favor at current prices.
Best,
RB