Aluminum Corp. of China: Jim Rogers' Energy Efficient Stock Pick
-
Font Size:
The same Fortune interview with Jim Rogers, which I
referenced last week also contains an excerpt from his new book, A Bull in China.
In it, he goes over a few stock picks, including one I thought worth bringing to
the attention of investors interested in profiting from rising
CAFE standards and other increases in vehicle efficiency: Jim says:
Aluminum Corp. of China (Chalco)
(ACH).
Three year trend: profits up 86.7%, revenues up 88.8%. Chalco is the largest producer of primary aluminum in the world's
fastest-growing aluminum market. Established in 1999 out of state-owned
firms, this No. 2 aluminum manufacturer in the world is reported to be planning
aggressive acquisitions, including a possible takeover bid for Alcoa (AA). While some
new plants are being built, others in China have been closing due to the high
electricity costs. But world demand for this commodity continues to grow.
As petroleum becomes increasingly expensive, there will be an increasing push
to improve vehicle efficiency. One of the simplest and most cost effective
ways to do this is to incorporate more aluminum, as I argued in this
article about Alcoa.
I've long been leery about investing in Chinese firms, because I have serious doubts about Chinese commitment to shareholder rights and disclosure, although these may be improving. Nevertheless, my respect for Jim Rogers has peaked my interest, both in the stock and in his latest book.
DISCLOSURE: Tom Konrad and his clients have positions in AA.
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
-
Editor's Picks
-
Most Popular
- Ecolab: Strong Price Momentum and High Quality Financials
- Assurant Is A Compelling Short Sell
- Broadcom Enters FTTH Chipset Market
- Another Macroshares Oil Arbitrage Opportunity
- Freeport McMoran: With Copper Prices Rising, It's Still a Buy
- Oil and the Futures Market
- Full list of Editor's Picks »
- High Likelihood of a Market Crash »
- Time To Start Buying Some Dogs? »
- Sirius-XM Combination: A Future Microsoft Acquisition? »
- JP Morgan Offer for Wachovia Makes Sense »
- High-Yield Canadian Royalty Trusts: What's the Catch? »
- 7 Stocks I'm Buying Now »
- Adding to My GE Position »
- 7 Stocks for a High Yield Cash Flow Portfolio »
- Drybulk Shipping: Prepare for a New Record High »
- Nokia: Bargain of a Lifetime - Barron's »
- Top 10 Payout Yield Stocks »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- Time Warner's Due for a Comeback - Barron's
- Pep Boys: Price Skid Presents Long Opportunity
- Spectra Energy: Gas Pipelines Make Great Recession Proof Stocks
- Barron's Drinks to Constellation
- Adding Wood to Your Portolio: A Worthwhile Investment
- Arkansas Steel: 10 Structural Changes That Should Trump the Business Cycle
- Gross Margin Drivers at Potash Corp. (Part II)
- A New Strategy for EXACT Sciences
- Cytori Therapeutics: The Stem Cell 'Celution' for Success
- LDK Solar: The Brightest Opportunity?
- Full list of Long Ideas »
- Crystal River’s Q2 Write-Downs Could Bankrupt the Company
- Assurant Is A Compelling Short Sell
- Fuel Systems Solutions: Time to Take Profits
- GM an Unlikely Hero - Fast Money Recap (7/1/08)
- Pair Trade Visa and Capital One
- Amazon's Kindle Numbers: All Fluff, Zero Substance
- A. Schulman: Cashless Profits
- Titan Machinery: Doesn't Anybody Look at Valuation?
- Goodrich Petroleum: Gas in the Ground Doesn't Mean Cash in the Bank
- Outlook Remains Grim for MBIA, Ambac
- Full list of Short Ideas »
- StanCorp a Safe Financial - Cramer's Lightning Round (7/2/08)
- Momentum Stocks Stalled - Cramer's Stop Trading! (7/3/08)
- Expecting a Lift for Pediatrix: Cramer's Mad Money (7/3/08)
- The Most Bullish Thing - Cramer's Stop Trading! (7/1/08)
- Exelon's Got Nukes - Cramer's Lightning Round (7/1/08)
- Prescription Prediction for Allscripts - Cramer's Mad Money (7/1/08)
- Rex Marks the Spot - Cramer's Lightning Round, (6/30/08)
- Medicare Bill Buys - Cramer's Mad Money (6/30/08)
- Cracker Bottom of the Barrel - Cramer's Lightning Round (6/27/08)
- Britannia Bulk Rules the Waves - Cramer's Mad Money (6/27/08)
- Full list of Cramers Picks »
Most Popular Feeds
-
ETFs
-
US Market
-
Long Ideas
-
Alt. Energy
- Full list of feeds »
Hedge Fund Jobs
Job Seekers:
- Search jobs by category
- Get job alerts by email or live feed
- Apply online
Employers
- See all recruitment options
- Get applications online or by email



This article has 2 comments:
Lepoff, M.D.
- germany