A person who knows a lot about metals says that copper is going to be very valuable soon. This is because there won't be enough copper to meet everyone's needs and more companies will want to buy smaller companies that have copper. One company, called Freeport Resources, might get bought by a bigger company because it has a lot of copper in a place called Yandera. If this happens, people who invested in Freeport can make a lot of money quickly or slowly over time if the company keeps growing on its own. Read from source...
1. The author of the article is using a classic example of confirmation bias by only presenting one side of the story and ignoring potential counterarguments or risks associated with investing in copper stocks. For instance, he does not mention any possible threats to the demand for copper due to alternative materials or technologies, nor does he consider the possibility that the supply/demand gap might not materialize as expected.
2. The author also relies on emotional appeals and exaggeration to persuade readers that investing in Freeport Resources is a no-brainer decision. He uses phrases like "going to go high and stay high" or "soar", which create an impression of certainty and urgency, but are not supported by any empirical evidence or logical reasoning.
3. The author's credibility is also questionable, as he does not disclose his affiliation with Freeport Resources or any other interested parties that might benefit from promoting the stock. This raises doubts about his motives and objectivity in writing the article. Furthermore, he cites no data or sources to back up his claims, making it difficult for readers to verify the accuracy of his information or assess the quality of his analysis.
4. The author's argument is also based on a weak foundation, as he assumes that M&A activity in the copper sector will necessarily lead to higher share prices for Freeport Resources. He does not explain how this would happen or provide any evidence that such a scenario is likely or beneficial for investors. He simply states it as a fact without justification or explanation, which suggests a lack of critical thinking and research.
1. Freeport Resources (OTC:FEERF) - Buy with a target price of $20 per share in 2025. The company has a strong growth potential due to its large copper resources, the impending supply and demand gap, and the possible M&A activity in the sector. The main risks are the political instability in the countries where the company operates, the environmental impact of the mining activities, and the volatility of the copper price. However, these risks can be mitigated by diversifying your portfolio with other copper-related stocks and ETFs, such as FCX, SOC, or JJC.