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Freeport McMoran - FCX - cls: 58.48 chg: +1.99 stop: 55.85

Company Description:
FCX explores for, develops, mines and processes ore containing copper, gold and silver in Indonesia, and smelts and refines copper concentrates in Spain and Indonesia. (source: company press release or website)

Why We Like It:
Concerns over inflation and a surge in crude oil over $60 a barrel sent gold futures soaring to a $23 gain where gold at $684 an ounce. Gold and mining stocks rose on the move and FCX now looks poised to breakout over resistance at the $59.00 level. Meanwhile, FCX's acquisition target Phelps Dodge (PD), broke out over resistance near $125 to close at a new high. If you didn't know FCX is in the process of buying PD and the E.U. anti-trust commission just cleared the deal yesterday. Volume on FCX's rally last week was very robust and after a brief pause the stock looks ready for another leg higher. A breakout over $59.00 for FCX would push through P&F chart resistance and produce a new triple-top breakout buy signal. We are suggesting a trigger to buy calls at $59.25. If triggered our target is the $64.00-65.00 range.

Suggested Options:
We are suggesting the April calls.

BUY CALL APR 55.00 FCX-DK open interest=147 current ask $5.70
BUY CALL APR 60.00 FCX-DL open interest=978 current ask $3.00

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/17/07 (unconfirmed)
Average Daily Volume = 6.5 million
 

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