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Freeport McMoRan CEO buys 1 million shares
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Friday, 21 Jun 2013
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The CEO of the world's largest copper mining company bought 1 million shares of his company's stock at USD 31.16 per share on June 3. At the time of this writing, shares are trading around USD 29.32.

Now, I don't want to suggest blindly following the investment moves of every industry insider. But when a CEO makes USD 31 million purchase of his company's stock, which is trading for the cheapest it's been since 2008 I think a closer look is in order.
Regular readers may already know that mining stocks have not fared as well as the broader market so far this year. Commodity prices for precious metals have been lagging, which creates headwinds for producers and drives share prices down. In another example, Barrick Gold has been trading for the cheapest valuation we've seen since 2004.

According to regulatory filings, James C Flores CEO and president of Freeport-McMoRan Oil & Gas, just bought 1 million shares of his company's stock. To be clear this was not an acquisition or an exercise of stock options this was a buy order. So the questions that immediately arise are Why now? and What does the future look like for the company?

Why now? Put simply, the stock is cheap. In April, share prices dipped to USD 28, which was as cheap as the stock has been since 2008. Even at today's asking price, shares are still trading for only 8 times forward earnings and a price to book ratio of 1.6.

Source – MSN.com

(www.steelguru.com)

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