Copper Company Goes For Gold
The CEO of the number # 1 publicly traded copper producer reveals why copper could be a winning trade and why his firm should be crowned this year’s Fast Money Madness champ.
Freeport-McMoRan CEO Richard Adkerson joins the panel for this conversation. Following is a synopsis of his main points.
By the end of the Q1, copper prices surged 26% and recorded their best period in two years, explains Dylan Ratigan. Last year 78% of Freeport-McMoRan'srevenues came from copper.
“We have good growth opportunities in an industry that’s challenged by growth,” says Adkerson. “The company we created with the Phelps Dodge merger is one that is creating increasing volumes in an industry that’s challenged from a supply stand point.”
“We’re really encouraged by global growth in terms of consumption led by China and then followed by the rest of Asia and Eastern Europe,” he adds. “Global consumption remains strong. It’s striking to look at copper prices at $3.80 in the face of a US slowdown. If you had told me that a year ago I would have been shocked by it.”
Have you seen any hiccups in emerging markets?
“Not in the emerging markets. They continue to be strong,” replies Adkerson. “And even though business is weak in the US, demand is fundamentally very strong.”
Now why should you win the Fast Money Madness tournament?
“We have a great growth story,” replies Adkerson. “We’re in great markets and have great bench strength. We even operate the largest gold mine in the world.”
Click here to find out if the traders advanced Freeport-McMorRan in the Fast Money Madness tournament.
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Trader disclosure: On Mar.31, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (HAS), (INTC); Najarian Owns (AAPL), (CSCO), (MSFT), (NOK), (TSO), (XLF), (YHOO); Najarian Owns (AA) Calls, (COP) Calls, (BSC) Calls; Najarian Owns (LEH) Puts; Finerman's Firm Owns (SPY), (MO), (MSFT), (NYX), (PM), (TSO), (VLO), (WMT), (YHOO), (GS), (GLNG); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM); Charles Schwab Is A Sponsor Of "Fast Money"