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Alcoa (AA):5 Reasons to be Bullish

|Includes:Alcoa, Inc. (AA)

 

 
1.Alcoa’s joint venture, named Ma'aden and based Saudi Arabia, looks to extremely cost-efficient due strong in-place infrastructure and cheap natural gas. The project should be operational by 2014.

2.Alcoa’s profitability should continue to improve with the global economic recovery, which so far pushed aluminum prices higher.

3.Alcoa’s competitive position has strengthened and improved in the downstream business. It has done this primarily by increasing its focus on area operations with reduced energy costs and higher demand prospects. In conjunction, it has also divested assets with low-growth.

4.Alcoa’s vertical integration model and current focus on more upstream quality assets should allow it to better handle fluctuations in the price of raw materials used for the creation of aluminum.

5.Alcoa remains one of the top players in the industry. It has done this by continuing to be the world’s largest producer of alumina and one of the largest manufacturers of aluminum.

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Summary:

We have no official buy or sell position on Alcoa (NYSE:AA) but heavily encourage a positive discussion to see all points of view be they bullish, bearish, and or something else.
Stocks: AA