1 Energy Deal to Avoid Right Now

The following video is from Friday's Motley Fool Money roundtable discussion with host Chris Hill and analysts Joe Magyer, James Early, and Ron Gross.

In this segment, Freeport-McMoRan Copper and Gold is buying Plains Exploration and McMoRan Exploration for $9 billion in cash and stock. Joe discusses why he doesn't like the deal. James makes the case for diversification.

After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan will have plenty on its plate as it tries to adapt to the new industry, as expanding into oil and gas carries plenty of inherent volatility. FCX had a profitable copper business and, on top of this foray into a new industry, it still has to contend with mining industry bellwether BHP Billiton. To find out if Freeport-McMoRan is a buy or a sell, simply click here now to check out the Motley Fool's brand new premium report on the company!

The article 1 Energy Deal to Avoid Right Now originally appeared on Fool.com.

Chris Hill has no positions in the stocks mentioned above. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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