|Mr. Dawes, Sr.: "When stand the banks of England, |
England stands...when fall the banks of England, England falls!"
Confidence. The America’s Financial Industry Regulatory Authority gets a little twitchy and asked MF Global to post more capital to back up it's Euro-zone government bond exchange swaps with bets of 6 billion on Spain and Italy government bonds, which in normal times is a low risk exchange transaction. Then Moody's downgrades MF Global's credit rating and all the other firms lose confidence and stop trading with MF Global.
An Honorary Mention goes out also to Freddie Mac, who announced they lost billions and are asking for another 6 Billion from the government. (disgusted head shake here) So let's talk now about making money instead of losing it.
(Symbol FCX, $40.32). With this stock you will see some common themes that I like. First, a 2.49% dividend for some income and to cut down on people shorting the stock. Second , the stock price is down from short term downturn in earnings , but earnings will increase going forward with a forward PE of 7.91. The company is projecting 2012 earnings of $.5.07 which is projected down from a few months ago when it was projected up near $5.57. I think we will have a rise in the price of copper and gold which will bring some of these earnings back in.
To me , Copper is just plain cheap here at $3.56 per pound.
Gold has taken a little breather here, coming down from the $1950.00 and ounce level down to $1755.00 per ounce. This company gives you exposure to both metals. The company is also a Molybdenum mining company, if you have an affinity for that metal.
If you buy this stock you are with good institutional company. State Street, The Vanguard Group and Blackrock each have 5% of their holdings in this stock. The financials of this company look very healthy to me.
I guess it wouldn't hurt us all to save a little more money and spend a little less. So, put some tuppence in the bank and restore a little confidence in our financial condition.