Diversification Won't Help FCX: Seymour

Diversification for Freeport-McMoRan means lower growth for the mining company, EmergingMoney.com's Tim Seymour said Tuesday.

"I'm bullish about the copper market, which is why I'm very disappointed this company has basically thrown in the towel on being a dedicated copper and gold company and now going into oil and gas, where to me there are no synergies, they will wreck a lot of capital," he said. "There will be no special divs."

On "Fast Money," Seymour also pointed to a lower valuation for the company and called its diversification "running away from emerging markets," including Indonesia and Peru to focus on the United States.

"To me, that's a low-growth strategy, one that's fraught with a lot of execution risk," he added.

"It's rallied 18 percent off the ground and that was vs. other copper peers. It's up about 9 percent since that time."

Seymour added that the bounce meant that the stock was now stick in no-man's land.

"I think it's a great, great company, but their strategy to me is very concerning in the short- to medium-term," he said.

StockMonster's Guy Adami disagreed, saying the company's diversification into gold was positive.

"This is not just a copper company," he said. "It's a gold company, as well. A lot of people don't give them credit for that. The valuation is fair, and I believe as this broader market rallies, it's going to drag up FCX.

"I think in terms of beta, FCX will go up faster than the broader market," Adami added. "We've seen a significant move, but i think there's further upside in the stock."

Trader disclosure: On Jan. 22, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long RIMM CALLS; Pete Najarian is long SBUX; Pete Najarian is long FB ; Pete Najarian is long MSFT; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long CSCO; Tim Seymour is long SBUX; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is short SPY; Karen Finerman is short IWM.