Is FREEPORT MCMORAN a good short term buy?
 | By Rifka Kats | Macroaxis Story |
Today I will break down FREEPORT MCMORAN. I will cover the possibilities of making FREEPORT MCMORAN into a steady grower in September. FREEPORT MCMORAN INC elasticity to market is moves slightly opposite to market. The returns on the market and returns on FREEPORT MCMORAN appear slightly correlated for the last few months. Strong basic indicators of the company may suggest signs of short term price drift for investors of the company. We consider FREEPORT MCMORAN very steady. FREEPORT MCMORAN INC secures Sharpe Ratio (or Efficiency) of 0.0112 which denotes the organization had 0.0112% of return per unit of return volatility over the last 1 month. Our approach to predicting volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for FREEPORT MCMORAN INC which you can use to evaluate future volatility of the firm. Please confirm FREEPORT MCMORAN INC Mean Deviation of 1.89 to check if risk estimate we provide are consistent with the epected return of 0.026%.
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Reviewed by Gabriel Shpitalnik
This firm has beta of 0.35. As returns on market increase, FREEPORT MCMORAN returns are expected to increase less than the market. However during bear market, the loss on holding FREEPORT MCMORAN will be expected to be smaller as well. FREEPORT MCMORAN dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about 0.1 per share. Let me now analyze FREEPORT MCMORAN EBITDA. According to company disclosure FREEPORT MCMORAN INC reported earnings before interest,tax, depreciation and amortization of 3.64B. This is 357.68% higher than that of the Basic Materials sector, and 277.36% higher than that of Copper industry, The EBITDA for all stocks is 6.63% higher than FREEPORT MCMORAN.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Freeport McMoRan. Your research has to be compared to or analyzed against Freeport McMoRan's peers to derive any actionable benefits. When done correctly, Freeport McMoRan's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Freeport McMoRan.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Freeport McMoRan. In general, sophisticated investors focus on analyzing Freeport McMoRan stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Freeport McMoRan's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Freeport McMoRan's intrinsic value. In addition to deriving basic predictive indicators for Freeport McMoRan, many experienced traders also check how macroeconomic factors affect Freeport McMoRan price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Freeport McMoRan's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Freeport McMoRan's Liquidity
Freeport McMoRan financial leverage refers to using borrowed capital as a funding source to finance Freeport McMoRan ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Freeport McMoRan financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Freeport McMoRan's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Freeport McMoRan's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Freeport McMoRan's total debt and its cash.
Details
The current investor indifference towards the small price fluctuations of FREEPORT MCMORAN INC could raise concerns from investors as the firm closed today at a share price of 215.0 on 565.000 in volume. The company executives did not add any value to FREEPORT MCMORAN investors in July. However, most investors can still diversify their portfolios with FREEPORT MCMORAN INC to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.3215. The current volatility is consistent with the ongoing market swings in July 2019 as well as with FREEPORT MCMORAN unsystematic, company specific events. FREEPORT MCMORAN discloses 32.94x in price to book. FREEPORT MCMORAN is selling for 215.00. This is 1.83 percent down. Day high is 215.84. In closing, our analysis show that FREEPORT MCMORAN Moves slightly opposite to market. The company is overvalued and projects odds of distress low for the next 2 years. Our final buy-hold-sell recommendation on the company is Strong Sell.
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