Long/short equity, value, special situations, growth

Kaiser Aluminum & The Aerospace Inventory Overhang

In September, I wrote about the bullish case for Kaiser Aluminum (NASDAQ:KALU): Kaiser Aluminum: Exposure To Aluminum Growth Without Commodity Risk. My investment thesis was based on Kaiser benefiting from the secular trend of increasing aluminum content in planes and cars as well as the cyclical rebound in the aerospace and automotive industries following the financial crisis. Kaiser's results over the last few quarters were negatively impacted by an inventory overhang in the aerospace market, but, at the time, it seemed like a speed bump. Management was optimistic that the situation would be resolved soon. However, the Q3 results indicate that the inventory overhang is more of a headwind than previously thought and I am now more...

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