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Jim Cramer's take on Freeport McMoran's (FCX) big deal for McMoRan (MMR) and Plains (PXP): "It...

Jim Cramer's take on Freeport McMoran's (FCX) big deal for McMoRan (MMR) and Plains (PXP): "It doesn't pass the smell test." For FCX shareholders, the "instant re-coloration" of the company from copper to oil and copper should cause worry that maybe something's wrong with the copper side. The deal shows the fallacy of playing the mining stocks instead of the ore; the way to play copper is through JJC.
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Comments (2)
  • Zenith Strategies
    , contributor
    Comments (610) | Send Message
     
    They are two different trades. JJC has issues that every ETF has with respect to commodities. Contango. Prior to a trade, examine the futures curve, global supply and demand statistics etc.
    6 Dec 2012, 10:42 AM Reply Like
  • Windsun33
    , contributor
    Comments (4326) | Send Message
     
    Another not so brilliant call by Cramer. Not only is (JJC) very thinly traded, over the past 5 years it has remained essentially flat, and has no dividend.
    6 Dec 2012, 11:46 AM Reply Like
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