Kofi Bofah

Alcoa: Dead Money Personified

I have never bought, sold short, or held any options on Alcoa. Honestly, I am evaluating the Dow 30 stocks; and Alcoa happens to be the first.

I have held BHP Biliton before, but liquidated this past summer.

I believe that cyclical stocks can be deceptive on the grounds of valuation. The 'E' denominator can get whacked quickly in a downturn and the P/E will rise accordingly. Hence, valuations often appear cheap - just as the cycle is peaking.