Freeport (FCX) Preparing for Big Acquisition?

Comments from Freeport-McMoRan Copper & Gold (NYSE:FCX) Chief Executive Officer Richard Adkerson, saying the company's balance sheet is strong enough to handle a large acquisition, resulted in the share price of the diversified miner to soar.

The implications are Adkerson is looking for such an acquisition to help boost the revenue and earnings of the company, as its size makes it hard to make acquisitions which will have a significant impact on the bottom line.

Also of importance is the large amount of copper the company has, which will be a major factor in the rebuilding of Japan, where copper and other metals are expected to be in big demand for years to come, even more than when China and India were the major factors.

It wouldn't be surprising to hear of a major bid for a significant company in the next several months, as the long-term supply and demand situation has just gotten better with the addition of Japanese demand, and it should extend the commodity bull market out for several years beyond the already hefty projections.

Freeport has a market cap of almost $52 billion.

Freeport closed Wednesday at $54.88, gaining $2.60, or 4.97 percent.