From what I have observed here, your tenacity against odds of a commodity stock price swings is an admirable trait representing the true long term theme of value investing. Personally my ability and patience to hold thru these wild gyrations of a very volatile group has been severely tested at times, resulting in a failure to hang in. One thing I do know is that FCX has an awful lot of hard assets and they continually find more. I find the traders, the hedgies, and others in control of the stock price often with more money than brains difficult if not impossible to fight. FCX is a very rich company, much more rich than many people realize. But they, like others in business for the long term care much more about the long term development of China than a 20 point swing in the stock. Maybe I'll rejoin you sometime, but being underwater at this point doesn't enhance my conviction on commodities at the moment, including oil and gas.
The reaction in SCHW to what I consider a decent report is astonishing. I realize they have some debt as well as assets, but 24 billion in cash and equivalents along with over $19 per share in cash - one would think there would be a floor somewhere below not far away. FBR says downgrade? From this angle, they are getting about another $3 billion in cash when the US Trust deal is completed, and to think they won't know what to do with this cash, seems a little bit much, even for FBR. |
