Wednesday, December 5, 2007

FREEPORT Mc MORAN



Can I hear you say Double Bottom?
With a PE of 9 and a growth rate of 27 this stock is dirt cheap and was unfairly whacked. I have owned it and sold it since 2003, but I should have just held it. This is another great opportunity the Market gods have given us to enter this stock.

The stock chart shows it clearly bottomed and there has been no real fundamental change in the business of this company, at least that been reported. ECONOMIC WORRIES, GLOBAL SLOW DOWN, HEY its not Halloween its XMAS for god sake go buy stuff.

PS. Thanks Toronto Dominion for the RIMM Upgrade.

Posted by prudentstockinvestor M.D. at 8:51 AM

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About Me: Disclaimer

$BPCOMP

$BPCOMP
Extremely Oversold

Regarding Chart: BPCOMQ

This is the lowest close seen in years, usually a sharp and violent rally follows these moves enhanced by short covering, this is no time to short and start making a shopping list.

Bear-ly Hangin" In dustrials

Bear-ly Hangin" In dustrials
Dow Graph: 11/20/07
The Dow looks like its fighting for its life here at the level. It's no surprise there was a vicious bounce off the trend line as shown in the chart. Unfortunately, the last time we had that five hundred point reversal day was caused by the Fed stepping in, there has to be a similar event that helps the market or there is more pain ahead. The Fed minutes said nothing the market really liked, we sold off hard and bounced back hard as we hit support. This was just a reflex rally we may have to get one more really painful selloff to get around 12500.