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Investors May Not Want To Follow Carl Icahn Into Freeport-McMoRan

Over the past two trading sessions, shares of Freeport-McMoRan(NYSE:FCX) have soared nearly 33% driven by a recovery in commodities like oil and by news that investing legend Carl Icahn had taken a substantial stake in the business, now controlling nearly 8.5% of the enterprise. The question some investors are likely asking themselves is whether they should follow Icahn into the trade or if it might be better off looking elsewhere for value.

On August 27th, the day that news broke regarding Icahn's position in Freeport, management announced some major changes moving forward. According to a press release issued earlier in the day, the company intends to reduce output of copper and expects that its cost structure can improve materially. In the table below, you can see what the company's hopes are moving forward for 2015 and 2016 and how those forecasts stack up against the previous forecast put forth by the business.