Comments on: Freeport McMoran Reassures With Latest Update http://enlightened-american.com/2009/01/29/freeport-mcmoran-reassures-with-latest-update One person's quest to make sense of a senseless American economy and society. Sun, 08 Jan 2012 12:07:34 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Davy Bui http://enlightened-american.com/2009/01/29/freeport-mcmoran-reassures-with-latest-update/comment-page-1#comment-4674 Davy Bui Fri, 30 Jan 2009 15:59:32 +0000 http://enlightened-american.com/?p=296#comment-4674 I forgot one other point which was a shelf registration filed by FCX to issue $750M in stock at-market, something the company referred to as a reverse stock buyback. As I've stated before, I'm perturbed by the tendency of companies to buy back stock at high prices and issue new equity at low prices. OTOH, if the company faces a liquidity crunch, the more tools on hand, the better. As we've seen, liquidity crunches kill companies dead. Still, it is yet another risk factor but not a big enough one to sway me toward selling now. I forgot one other point which was a shelf registration filed by FCX to issue $750M in stock at-market, something the company referred to as a reverse stock buyback. As I’ve stated before, I’m perturbed by the tendency of companies to buy back stock at high prices and issue new equity at low prices. OTOH, if the company faces a liquidity crunch, the more tools on hand, the better. As we’ve seen, liquidity crunches kill companies dead.

Still, it is yet another risk factor but not a big enough one to sway me toward selling now.

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