Freeport (NYSE:FCX) Ready to Take Off?

Some analysts have been getting very bullish on some metals company, with Freeport-McMoRan Copper & Gold (NYSE:FCX) being one of the top ones.

Their growth over the last 45 days or so is cited as a major factor, but I don't take that too seriously, as that seems to be a more arbitrary period picked, as you could start at the beginning of August and you would get a loss for the last month, while if you start at the July lows, you could say they gained about 15 percent.

No matter how one tries to spin it, in regard to the most important metals market as far as copper and aluminum, is China, and they've cut back on their consumption by 3 percent from last year, and even though they'll continue to grow, the rate is being cut down significantly from their concerns over the over-heated property market in urban areas.

So that will decrease demand for these metals in the short term, and there's nowhere else in the world that will make up for the slowdown in China.

With Freeport actually doing better than the underlying metals, even if prices increase in the second half, which is expected, they may have that already built into the price.

Commodities will continue to be strong, including metals, but it seems the companies like Freeport-McMoran which provide the commodities will continue to have a bumpy ride for the next couple of years at least, as economic data continue to confirm we're still in the midst of a lingering recession.

JPMorgan (NYSE:JPM) Cuts China GDP Growth Estimates

JPMorgan Chase & Co. (NYSE:JPM) said in a note to clients Friday that they see China's GDP growth falling on the near-term “loss of momentum." That includes globally and in the U.S.

The banker sees this being the case through the rest of 2010 and until at least the end of 2011.

Their previous estimate of 10 percent has been downwardly revised to 9.8 percent for 2010, and as low as 8.6 percent, down from 8.8 percent, for 2011.

Much of this is in relationship to their battling the urban property markets which are in danger of becoming a bubble.

Companies providing materials in those areas could have their numbers impacted over the next year-and-a-half if these estimates hold up, or become even worst than expected.