. >> mike is placing a bullish bet on freeport mack by selling a put. the normally you want to keep the stock above that put. that allows you to get the money you put in. but because you're short the put, you could be forced to buy that stock at the put price, even the stock sells below that level. >> i'm keeping this one pretty simple. vol got a pop today based on the news -- i mean, this week, i should say, based on what's been going on. this stock has continued to get hit. i'm going to collect about 85 crepts, a little over 3% of how much you're risking. you could be forced to buy the stock at that lower strike price. but once i'm having the stock put, net of the premium i collect, i'm going to be buying it at about a 12% discount to its current level. that's going to be a one-year low. >> disaster, disaster, disaster, disaster. this is going to be -- >> but the stock is already quite cheap. it's one and a half times bought. >> but selling a put on a stock like this could actually be a little dangerous. >> this is going to be ground zero. if china im

now i know that the department of energy has given permission to freeport and the department of energy has given approvals. at the same time, i know you started a long time ago. i know the sierra club seems to be interested in stopping everybody other than you, why would we think more than two or three of those projects will ever get done? >> i think it's more difficult people think, it's cumbersome, time consuming. it takes money. you are going to spend a lot of time and energy and money before you know if you have a project that works or not. so look at us, we have been at this for three years now. >> right. >> it doesn't come overnight? >> no. >> other people will find the same thing. i think the next two projects will start sometime next year, not this year. >> and they're not anywhere near the ports that you have and, well, no, freeport does, maybe dominion does, those are almost as ideal setup as you have? >> yes. i would say semper is not bad, either. but it's very easy to criticize from the outside. you work a site. nothing comes free. nothing comes easy. you got to look at you

shares of freeport-mcmoran tumbling 20% in the last year.a global recovery or sounding the alarm of more head winds? let's debate it. stephanie is the bull, josh is the bear. 1:30 is on the clock. stephanie, make your case. >> so stock is down 17% this year. it's down 7% last year. so it's totally underperformed. on any valuation metric you look at this thing is trading at a discount to its five and ten year historical average. it's 40% discount to its peer group. it has world class copper assets. they're diversifying away from copper and i like those acquisitions. the company is getting no credit whatsoever for the synergies they're talking about. the balance sheet is strong. it's 4.5% dividend yield. that typically is a good time to buy commodity stocks or this one in particular. >> stephanie, i get it from a valuation standpoint, and i know you like to look for things that haven't worked yet. but i have to tell you, i think you're playing with fire here. fcx sits at the crossroads of the two worst things in the world rye now, one is emerg

china is the reason freeport mcmoran can't compete. sell, sell, sell.at offsetting weakness, but in a true chinese clause, what we should expect, buyers. general motors has moved so aggressively that the company might call itself general tso. the people's republic is now a fulcrum market for gm. that's now all in jeopardy. you can't have the autos just rely on latin america, united states and europe. if you're gm, you simply won't make enough money. china is that crucial to them. but china's not good. when chinese make too much, they flood the world. that's the way the chinese play. that is their way. nobody stands up to them. so every steal company gets hammered. same with iron players. cliffs natural resources is the one i'm most worried about, clf. that's a nasty chart. what about tech in china? well, for apple. the key to the massive deployment of smart phones is china. but they've rubbed china the wrong way, so apple's chinese sales are simply unimpressive. you can't have that happen. numbers keep coming down. the consumer packaged goods, numbers a

now, last year, we told you about workers at the sensada technologies plant in freeport, illinois.d our show there. the jobs were not only shipped to china, but the employees who lost their jobs had to train the people who were taking them. that's right. sensada is owned by bain capital. the same that made mitt romney millions. they're not the only ones dealing with outsourcing. there are many other mitt rom necessary and bain capitals out there. one of them is charles chips starns. medical supplies, producing things like glucose monitors and insulin supplies. when he went to china to say that their jobs were being sent to indiana, here's what happened. >> just behind me chip starns is being held captive at his factory. he and his lawyers are negotiating a deal with the workers. he says he's being held because of rumors he is about to close his entire plant. he said he only planned to move part of the business to india. you feel like you paid part of the ransom? >> 100% i got held for ransom. every other person that i let go had jobs there. yeah, the payout was about involved about

hewlett-packard and micron and i like the deep cyclical areas that are in the metals areas like freeport oreo tinto or, you know, potash, things that are commodity-based and have a lot of cyclicality. they're undervalued on a short-term basis relative to themselves and on a 40-year basis relative to where the staples companies and defensive companies trading at. david: phil, i hear in the background? i could have sworn i heard all the traders say, darrell, darrell. seriously, what is happening with commodities? because some people are saying that as awful as they were treated this week, despite the fact that there may be less inflation pressure because the fed eventually will pull back from bond buying, still something like coal, for example, has hit rock bottom and time to make a comeback? what do you think? >> yeah. when you start looking at commodities you have to really break down the fundamentals of them, the supply, the demand. you mentioned coal. that is a player that we're watching. other markets you have to look, we're in chicago. you have to look at some of the grain markets. l

groo freeport mac is up first, and why are you this. >> the facts are the commodities are still underld be a seller. >> bed bath and beyond trying to make a comeback early part of this year from last year's sell-off. it failed to do so. right now it's experiencing what i would call a technical sell-off. earnings are coming up on june 26th. ahead of that, you don't step into the stock. thereafter there is opportunity and it would be from the long side. >> first solar, josh, what do you do with this one? >> i've got to tell you, the negative here is that it's up huge, 80% year to date, even more if you go back further, but we can be constructive here, because valuationwise, it's not completely absurd. all of these companies have morphed from solar cell manufacturers to more like construction companies, where they're doing these massive projects and building a -- if you're going to play solar, i would want to go with one of the bigger names. goldman upgraded on friday. they put a $63 targets on it, and again the linchpin here is earnings cash flow, not hype any more. >> josh, priceline.

. >> jcpenney or freeport-mcmoran. is popping. >> they closed a mine.that means is they don't have to live up to those prices and those commitments. that shows big capacity. however there's more capacity coming on. >> tesla. >> tesla, increased their price to 190 on the stock. basically said the bear case has been overcome. they like the position here so the generation three car looks on track. our opinion, stay the hell away. >> first solar. >> 8.5 million shares. the stock was down $4. hit hard on the news and goldman came out and defended them. the stock has rebounded off the lows. we'll see about that 50, whether it holds there. >> we're heading to the floor of the nox new york stock exchange to get some answers on the volatility. >>> nat gas, is the pain in nat gas over? >> every morning the markets take off. at noon halftime report puts it in context. with the news driving the markets and debates making the news. get a jump start on the afternoon. >> "halftime report" real money, real debate, week days at noon eastern. >> "halftime report" real mo

other laggards in the materials, freeport mcmoran, u.s.ell and here the biggest droppers are money managers, genworth and invesco, e-trade with a good week last week along with schwab group as well. see them moving a little bit lower. on the plus side, utilities in and out of green all afternoon. nrg, public service, pse & g, our provider in much of northern energy and modest gains there. >> folks. >> very interesting on the point about the utilities. dave lutz earlier on, the last ten summers have been dominated by utilities and technology as well which is kind of a weird pairing and nonetheless, thank you. >> next up, a housing bull turns bearish. kind of, and that red panda by the way, he was found rusty is okay. it's monday. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support,

plus, freeport mine will come back in a mts of days or weeks. what's your outlook here?u can't find yourself being too terribly bullish of any ought metals at this point. copper clearly has fundamentals facing it. without the fed, you got problems. you took copper down the morning, however, to what i used to call the obscene number. you took it down to below 3 cents, $3 per pound. you might. you might be making a low here. but i would not press that issue. gold, on the other hand, i think is nowhere near making a low. i think gold wants to go demonstrably lower, still. it needs, as i always said, gold needs fuel. it needs a lot of fuel, more mule, monetary aggressiveness to push it up. and it doesn't have that as far as the ecb or the fed is concerned. it only has one friend in the bank of japan and if you are going to be long of gold the only way is to be long in yen terms. but anybody who holds gold in dollar terms finds himself in a very uncomfortable position. . >> i want you to go back to that point you made about copper. you said it might be at a low. what would yo

two traders debate where freeport-mcmoran is heading next. >> looking forward to it.coombs joins us from live from the nymex. are people down there -- what's the atmosphere like right now? >> you know, it's fairly calm ironically. people are just watching this decline. let's ask trader mike vidella, it does seem fairly calm, fairly organized. not necessarily huge volume today. >> no. i think a lot of it happened overknight and the volatility did spike in the options pit. as the market goes down, the fear is to the downside so the options vl tilt did spike. >> ubs cut its one month forecast for gold now saying they see it at $1,250, down from $14,2 $1,4 $1,425. today we're really having trouble or the market is really having trouble holding that $1,300 an ounce left. >> $1,250 is not far away. this $1,285 level was very important. it was retracement level. if we break that level, we really don't have much between here and $1,150. so there's a lot of investor pain. this is a lot of investors getting out of their positions, maybe people who were long above that $1,500 le

that pressure and raise that morale, we should do it and even at this late hour we've done a lot of freeportat we generally most of not all of us agree with sequestration it was disgraceful, bad idea we can go on and on and describe it in any number of ways. i wasn't against it but i surely would have. this is not the way we need to decrease our spending and to deal with the deficit. so i rise in support and it is a message as much as a partial solution to the problem and i appreciate the gentleman bringing it to our attention tonight. i yield back. >> the gentleman has mentioned that he would have voted against the sequestration had he had the opportunity. those of us that had that opportunity, you know, most votes as you here for awhile with it isn't a simple yes or no, black and white. that vote was multifaceted giving it the first thing that it did was it raised the debt ceiling limit. if we hadn't voted for that we would have basically shut down the government. so the first thing was to pass the debt ceiling and the second was to pass a super committee that was responsible to come up wi