Phelps Dodge (PD) en el punto de mira

Driving the stock is news that activist hedge fund Atticus Capital, which owns 10% of PD, said in a regulatory filing that it had met with an investment bank and several potential investors to discuss a possible acquisition of the company. Atticus, which was one of the funds that helped break up the proposed Inco (N - commentary - Cramer's Take)/Phelps Dodge merger, has been calling for Phelps Dodge to either sell itself or buy back a significant amount of stock for months. Now it seems to have taken matters into its own hands.

Phelps Dodge is an incredibly cheap stock, and with Atticus pushing to unlock the company's value, I think shares still have more upside. The company trades at less than six times next year's projected earnings and it has more than $2 billion in cash with which to buy back stock (including a $475 million breakup fee from Inco). Unless you think copper prices are set to collapse next year, Phelps Dodge is definitely worth a look.