FCX - would Phil Fisher buy?

I like FCX in that the company has a huge margin of safety while still having tremendous upside on anything but the worst scenarios of copper under $1.00.  FCX is the lowest cost producer and their break even cost after credits for byproducts is $1.00.  If copper pricing turns out to be flat to slightly down, FCX trades at 6-8x free cash flow.  Granted this multiple could be looking at peak earnings but over the full cycle FCX is still trading below 10x.  I also believe that FCX having negative earnings in the cycle is unlikely going forward as I cannot see copper trading back to $1.00.  Since the business will have less cyclicality (no negative earnings), the multiple prescribed can be higher at say 12x bringing a strong return (perhaps a double from these levels).   

In addition, FCX has projects available to increase growth should copper prices appear sustainable above $3 on a longer term basis.  FCX management believes this to be the case as they are spending CapEx above maintenance CapEx requirements.  In the last quarter, FCX guided for next year CapEx spending 2.6B with only 1.2B being maintenance capital.  

If copper prices are able to trade higher, lets say $4 FCX is trading closer to 4-6x free cash flow and trading at perhaps 8x the full cycle.  In that case I can see FCX an even larger double.  

While I have not gone through Phil Fisher's 15 point checklist point by point, FCX seems to be a stock that Fisher might purchase.  

Long FCX

Phil Fisher - Common Stocks and Uncommon Profits

I finished reading Phil Fisher's book Common Stocks & Uncommon Profits over the weekend.  His basic investment philosophy was that a good investment now in a growth stock could be held forever and multiply by 1000% or more vs a good value stock which could be bought at maybe 50%-75% off.

Fisher considered buying growth stocks at any price, figuring that 10 years from now would cure any problems with overvaluation issues.  He did offer the opinion that perhaps you could buy some on a plan, buying some now and buying in increments just in case there was a broader market crash.  

I do wonder if he saw some of the P/E ratios today if he would feel the same way.  I look at companies like Coca Cola (KO) that have not appreciated in any way (all time high was in 1997) because of overvaluation. KO traded at over 50x earnings and is now finally in line with the S&P 500 P/E ratios.  A worse example is Cisco (CSCO) where the investor would have lost 75% of his investment because of an even more extreme valuation of 85x earnings and now a market multiple that is below the S&P500.  

After reading his book, I should hold on to growth stocks and allow for some small overvaluation in the short term as long as it did not become excessive (like above KO and CSCO examples).  A good example in today's market is COH, which I consider to be one of the best growth stocks out there.  

Back in 2010, I was able to buy COH in the mid 30's.  At the time, I considered fair value to be at 40 and sold covered calls until COH was called away.  I have not had a chance to get back in as the stock currently trades in the low to mid 60s.  Since that time I calculate that fair value has risen from 40 to 49.  While valuation is higher, I do not consider it excessive as I can see COH trading far higher in the future.