Picked Up Some Freeport (FCX)

Freeport-McMoRan Copper & Gold FCX is off more then 5 percent today. I'm using this weakness to pick up some shares in this basic materials company. Today's move appears to be a knee-jerk reaction to further concerns about a Chinese slowdown and a weak Europe. The euro is rallying against the dollar once again, pressuring commodities; Copper is down over 4 percent on the day. Freeport, to put it simply, is a cheap cash cow. Analysts estimate the company will earn $9.03 in 2011. At today's price of roughly $65.50 you are paying 7.25 times for next year's earnings. Last quarter the company handily beat Wall Street expectations (EPS of $2.00/share versus the $1.91 consensus) and doubled the annual dividend to $1.20 per share from $0.60 per share. Historically, the automotive and construction markets have been the largest drivers of metal consumption. In May, auto sales were up 17.2 percent year-over-year. May also marked the fifth straight month of double-digit sales gains. Construction spending also rose 2.7 percent in the month of May. Given these positive trends and the strong fundamentals of Freeport, today seems like an opportune time to buy some shares.