Quote from Hydroblunt:
I don't get why it was a nice call, if not for the news, PD was actually headed down short term as the Street and mainly the hedge funds are pretty bearish on copper. Even with Tenke, PD has a hard time justifying its valuation due to estimates for copper prices. I do not necessarily agree with any estimates, but you gotta understand who is moving this stock and what info they go by.
As of now, both FCX and PD are targets, as a handful of miners may become interlopers in this deal. Also, it's a question whether the shareholders will approve this deal, although there is a lot of overlap between the biggest institutional holders of PD and FCX. The PD shareholders who do not also own FCX actually believe PD is worth $150+ at the least. And not in the future, these people really believe that PD stock price should be close to $200 TODAY.
If FCX gets an offer, watch PD cliff dive.
I originally saw that PD wanted to hit $100 again and possibly continue. However, after seeing how this stock reacts to a slight drop in copper, it was obvious that it was way overbought. Too many people in.
Long term, does not matter, PD owns Tenke, which is #1 for copper.
