Ironically, Macquarie downgraded Freeport-McMoRan (FCX) from a target of $18 to only $7.30 while claiming it was a panicked move. The research firm cut the stock to Neutral despite having a target suggestive of a 30% upside from the previous close of $5.60. At the same time, Macquarie made the strange attempt to insist it wasn't giving up on the stock and the general commodity sector at the bottom of the commodities cycles. The firm as well cut Cliffs Natural Resources (CLF) to Neutral. Freeport is trading down at multi-year lows while at the same time copper trades at a level suggestive that the company can generate sizable cash flows. The lower oil prices will hurt the cash flow projections slightly, but copper remains the predominant driver of cash flows and profits. As long as copper sits above $2/lb like it does now, Freeport remains an interesting play. Unlike some of the oil majors, the company doesn't need higher copper prices in order to cover capital expenses and the dividend that was already cut to zero. Right now, copper trades at $2.04. My hesitation to diving into the stock is that Freeport keeps setting lower lows. The market fears the debt loads more then the cash flow picture suggests, but the market never lets facts get in the way. As the Macquarie downgrade reads, one should buy the stock based on the details of the investment report and the not the headline statements. Downgrades like this help with the bottoming process.