The last time this happened, shareholders saw a fivefold gain in 12 months.

It’s happening again.

Here’s the story…

Six weeks ago, I told readers of my True Wealth newsletter about Freeport-McMoRan, a copper and gold producer…

[ad#Google Adsense 336×280-IA]Freeport is what I call the “Master of the Universe” in copper.

For one, it controls the Grasberg mine in Indonesia. The Grasberg has the world’s largest reserves of copper and gold. But that’s not all. The company is so large and powerful, it actually mines more copper per year in North America than it does at Grasberg… and it mines more copper in South America than it does in North America.

Freeport also has more cash than debt – so it’s in great financial shape. But it was trading for an incredibly cheap six times earnings.

The last time Freeport shares traded for six times earnings, I told my readers, the world looked like it was coming to an end in late 2008.

Why was it so cheap again?

Because the price of copper has been falling off a cliff, because the workers at Grasberg are on strike, because Europe and China are facing a credit crunch… the list goes on.

But these things don’t change the outlook for the next two decades… The simple story is that demand for copper will outstrip supply. And Freeport-McMoRan (FCX) – the Master of the Universe in copper – is best-poised to profit from that.

But now, shares of Freeport have fallen to roughly where I originally wrote about them six weeks ago… Because the story is still the same, you can still take advantage of the opportunity. Immediately after I published that, Freeport soared – nearly 20% in a week.

It felt like the move happened on cue… like we got our timing just right… like we were on our way to seeing another triple-digit profit.

Here’s how I recommended trading the stock back then:

Freeport’s lows for this year were around $30 – or around 15% below where we are as I write. If Freeport gets below that level, I got it wrong… I was too early on this trade. If that happens, that’s fine…

I’m willing to risk 15% on the downside for the potential to make triple-digit profits in a year. That’s the right kind of risk-versus-reward scenario to make real money in the markets.

Check out shares of Freeport-McMoRan today… If you follow my guidelines of limiting your downside risk to about 15%, and having triple-digit upside, the odds are in your favor. The same advice applies today.

It’s a classic True Wealth bet – limited downside and unlimited upside potential. The last time around, the stock soared 400%.

Good investing,

— Steve Sjuggerud

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Source:  Daily Wealth